I actually figured it out it was loading 1.1 files from somewhere and running 1.2.5 minecraft. the conflict causes a loading chunks error
this will probably be the major problem when non-dev builds update to 1.2.5
Launcher/pack Version: launcher 1.0.1.3 pack 7.0.1
Operating System: windows 7 32-bit
Version of Java:6
Description of Problem: when world is generated or loaded a few frames of minecraft and then saving chunks and white-screen
Antivirus program:Norton