Executing cargo new directly in a drive root on Windows (eg, C:\ or D:) causes cargo to hang indefinitely at 100% CPU usage. Watching file access using ProcMon shows it attempting to open .git and objects directories, making me think that it's trying to scan upwards for a parent git repo.
Possibly related to #3783?
λ cargo --version
cargo 0.18.0 (fe7b0cdcf 2017-04-24)