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I'm playing a Solo game as France and I am at war with Prussia. At least 3 other major powers have separately DOWed PR. I have defeated the Prussian army and am sieging Berlin in Dec 1805.

During diplo phase, I make sure my surrender settings vis a vis Prussia are set correctly. When I attempt to execute the diplo phase, the game locks during the Prussian part of the phase. I suspect this _may_ be connected to a Prussian surrender (since it has lost literally its entire non-garrison army.

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Hmmm.  Have you tried the 1.01 beta patch?  (Register; then it'll be listed as a private download).  I used to have this in 1.0, usually when a nation was utterly vanquished, but 1.01 beta hasn't done that to me.  It's given me freaky remappings of nation-to-email/AI, garrison bugs, and nations surrendering to themselves, but I haven't had a non-termination yet.

If you're not using the 1.01 patch then try the 1.01 patch then let us know...