Your form loading is freezing because the UI of a windows form runs in a single thread. And the logic that you put on the Load event of this form is running on that thread.
You can run your loop on a separate thread easily by using a BackgroundWorker component on your windows form. On the event DoWork of your background worker, you place the code that has the loop that should run without block your UI. On the Form.Load event, you can start the background worker component by calling the method RunWorkerAsync. On the event handler of your button, you place a code to stop the background worker by calling CancelAsync method.
The article How to: Implement a Form That Uses a Background Operation shows exactly how to accomplish it.
About your comment on not being able to update the Text of a TextBox from a your background worker component. It happens because it is not allowed to modify the state of a windows forms control from a different thread (your background worker code is running on a separated thread) MSDN documentation says:
Access to Windows Forms controls is not inherently thread safe. If you have two or more threads manipulating the state of a control, it is possible to force the control into an inconsistent state. Other thread-related bugs are possible, such as race conditions and deadlocks. It is important to make sure that access to your controls is performed in a thread-safe way.
A sample of how you can update the state of your windows forms controls from your background thread will be similar to the one below (assuming that the new value is already stored on a String variable named text):
// InvokeRequired required compares the thread ID of the
// calling thread to the thread ID of the creating thread.
// If these threads are different, it returns true.
if (this.textBox1.InvokeRequired)
{
SetTextCallback d = new SetTextCallback(SetText);
this.Invoke(d, new object[] { text });
}
else
{
this.textBox1.Text = text;
}
I borrowed this code snipped from How to: Make Thread-Safe Calls to Windows Forms Controls article. It can provide you more information about how to deal with multi-threaded windows forms.