How are you installing the theme? Are you uploading the theme or downloading from the theme’s Dashboard?
I have tried both uploading the theme (a zip file downloaded to my mac) and downloading a free theme from the featured wordpress selection. I get the same message either way.
Are you able to upload the files via S/FTP?
If you aren’t able to it may sound like your file permissions may not be set properly. Contact your hosting company if you don’t know your S/FTP information.
You were right- got it working now. Thank you!
Awesomesauce!
Don’t forget to mark it as resolved. 😉