Im currently on magento 1.7 and when I try to checkout after filling out all the information i get stuck at step 3 for shipping method, it just shows up blank. I've been to system/config and made sure i have a shipping method on but it just doesn't show up?
Sounds like you don't have any carriers switched on, or any that are returning rates. Suggest just switch on flat rate and see if that shows. If you have a custom checkout switch back to the default theme and see if it works there (if it does its a checkout issue).
If someone was totally failing you would see an exception in var/error.log. And it would probably bounce you back to the cart page which it isn't.