If you are on windows vista/7 make sure you run the game in administrator, if it still doesn't go, it may be related to the minecraft.net servers being unresponsive, though at this point it's rather a very arguable theory, make sure your firewall/router/antivirus isnt blocking the file transfers of minecraft.
I have the same problem
Windows 7
Java JRE 7
Deleted every MC folder and tried reinstalling
Gets stuck downloading package at 1%
After a while it says "fatal error ocurred (4): connection reset"
Happens every time. I've deleted my whole minecraft folder, and I'm using the new launcher. Even tried the browser.
Friendship is very magical
Still doesnt work.
Delete your bin folder and it will work.
Windows 7
Java JRE 7
Deleted every MC folder and tried reinstalling
Gets stuck downloading package at 1%
After a while it says "fatal error ocurred (4): connection reset"
Fatal error occured (4): failed to download windows_natives.jar.lzma
Retrieving: windows_natives.jar.lzma 100%@394.48 KB/sec
For 2 days now...sucks.