Install fails IIS error_occurred

Trying fresh install on IIS. MySQL 5 and php 5.2.6

Install gets to the skin selection page and it displays two boxes. Left one is gray box and right one is basic skin with caption 'selected' below it. There is no drop down to select additional skins. I click Next and it goes through installing Basic Skin. Then click Next and get the error_occurred message.

Unpacked files to local PC, then uploaded via Dreamweaver.

Set config.local.php to Everyone RW;

Set images, sjkins and var to Everyone Full Control

Have tried this three times. Also, noticed that the downloaded tar file does not include any additional skins in it like previous versions did.

Any help?