Hi,
Well, I finally got it running. I'm not a php programmer, but it seems close enough to C that I was able to insert screen echo comments in the various index and configuration files so that I could determine where the problem was. It is not a server configuration issue, but rather what I'd guess is a nesting call problem. the admin\install\index.php routine has a number of "require_once" calls to other php routines. One of these is to config-defaults.php which in turn issues a require_once call to config.php. This is where the problem is. The nested call to config.php within config-defaults.php will not run (at least on my setup). By commenting out the require_once call to config.php (which by the way there is a warning in the code to not do!!), fixed the problem. Without this call the initial configuration runs fine and so far everything else seems to be ok.
So what is weird is why does config-defaults.php call config.php to begin with? There seems to be a lot of repetition in what the two do. Is this perhaps a bug in the setup?