Same problem here.
Even when the DirectoryIndex comment made no sense for me, I tried it with no luck as I supposed. I also tried checking suggested folder permissions, again with no luck. My error log shows a lot of this messages:
[Tue Dec 13 22:32:03.056340 2016] [charset_lite:debug] [pid 15023] mod_charset_lite.c(219): [client 127.0.0.1:54264] AH01448: incomplete configuration: src unspecified, dst unspecified
Which I couldn't understand yet...
The network console of the browser shows the same infinite loop described by other users.
I am trying to test PS 1.7 using a XAMPP box. Installing PS 1.6 in the same environment works without any problem.
Any idea would be much appreciated. Thanks.