I have a newly created website, and have created a subdomain for the WordPress blog. It is located in a subfolder of the main site \htdocs folder.
WordPress installs without any errors. I have installed it a few times now (deleting and recreating the database, then re-running the installation), and have tried both http://mydomain.com/blog/wp-admin/install.php and http://blog.mydomain.com/wp-admin/install.php.
Whatever I do the URL's shown in the Settings>General for WordPress and the Blog are http://mydomain.com/blog. If I change them, I break the installation, can no longer log in and (since it is a new installation) delete the database and have another go.
I am also testing the Grain theme, and find that images (like the RSS feed image) are not showing (red x placeholder instead).
I see this topic comes up frequently, but what I have read so far hasn't helped me (a complete newbie to WP).