Installed the released version of IM 6.5.6-6 Q16 Mac OSX Tiger.
convert -version
Version: ImageMagick 6.5.6-6 2009-09-30 Q16
http://www.imagemagick.org
Copyright: Copyright (C) 1999-2009 ImageMagick Studio LLC
This seemed to still hang:
convert -background lightblue -fill blue -font Candice -pointsize 72 label:Anthony label.gif
So added -debug trace :
convert -debug trace -background lightblue -fill blue -font Candice -pointsize 72 label:Anthony label.gif
Last few lines before hangs:
2009-09-30T10:46:41-07:00 0:01.560 0.330u 6.5.6 Trace convert[5542]: utility.c/GetPathComponent/1216/Trace
type.xml
2009-09-30T10:46:41-07:00 0:01.560 0.330u 6.5.6 Trace convert[5542]: utility.c/GetPathComponent/1216/Trace
type.xml
2009-09-30T10:46:41-07:00 0:01.560 0.330u 6.5.6 Trace convert[5542]: utility.c/GetPathComponent/1216/Trace
type.xml
2009-09-30T10:46:41-07:00 0:01.560 0.330u 6.5.6 Trace convert[5542]: utility.c/GetPathComponent/1216/Trace
type.xml
2009-09-30T10:46:41-07:00 0:01.560 0.330u 6.5.6 Trace convert[5542]: utility.c/GetPathComponent/1216/Trace
type.xml
2009-09-30T10:46:41-07:00 0:01.560 0.330u 6.5.6 Trace convert[5542]: utility.c/GetPathComponent/1216/Trace
type.xml
2009-09-30T10:46:41-07:00 0:01.570 0.330u 6.5.6 Trace convert[5542]: utility.c/GetPathComponent/1216/Trace
type.xml
2009-09-30T10:46:41-07:00 0:01.570 0.330u 6.5.6 Trace convert[5542]: hashmap.c/GetNextValueInLinkedList/634/Trace
...
2009-09-30T10:46:41-07:00 0:01.570 0.330u 6.5.6 Trace convert[5542]: configure.c/DestroyConfigureOptions/166/Trace
...
2009-09-30T10:46:41-07:00 0:01.570 0.330u 6.5.6 Trace convert[5542]: hashmap.c/DestroyLinkedList/422/Trace
...
2009-09-30T10:46:41-07:00 0:01.570 0.330u 6.5.6 Trace convert[5542]: string.c/DestroyStringInfo/771/Trace
...
2009-09-30T10:46:41-07:00 0:01.570 0.330u 6.5.6 Trace convert[5542]: string.c/DestroyStringInfo/771/Trace
...
2009-09-30T10:46:41-07:00 0:01.570 0.330u 6.5.6 Trace convert[5542]: splay-tree.c/GetNumberOfNodesInSplayTree/964/Trace
...
Addendum:
I ran it again with -debug trace and waited a while, then it started up again. So I took out the -debug trace and ran it again and it started working again.
time convert -background lightblue -fill blue -font Candice -pointsize 72 label:Anthony label.gif
real 0m1.434s
user 0m0.532s
sys 0m0.257s