By stroke of luck I was meddling around in LiteServe (webserver app).
I changed the association of .php file extension to php-cgi.exe (from php5isapi.dll) and clicked refresh on the install.php?step=2 and it worked. It created all the database tables and I can see the main blog pages....but now I am stuck again :-)
When I try to login to wp-login.php, I am encountering a similar problem as before. I enter the admin usernname and then the pw, click LOGIN, and it rests the page to wp-login with empty fields as it usually appears when loading. If I enter an incorrect pw, I get an error msg.
I am guessing it has something to do with PHP and LiteServe.
In LiteServe, I have the php file extension associated to the file php5isapi.dll. I have tried associating it to php.exe and php-cgi.exe, but sometimes index.php (main blog page) will not load and wp-login.php never loads, sometimes you see wp-login flicker quickly on the screen and it is then replaced with the usual "this page cannot be displayed".
I have spoken to the author of LiteServe, he reckons you should be able to associate any of the 3 - php.exe, php5isapi.dll; php-cgi.exe
I am a newbie to PHP, CGI and ISAPI so I really do not know which is best.
Any suggestions?