I fixed the problem (I use a different ISP hosting than what was recommended, that could have been some of the problems - I use HostGator)
Here's how I fixed the problem:
1) FTP the contents of the prestashop folder to where ever you would normally put your domain (sub-domain), etc.
2) Create a generic php.ini file (put it in the directory of where you just put your domain), my file contains these 4 lines:
allow_url_fopen = ON
allow_url_include = ON
allow_call_time_pass_reference = ON
file_uploads = On
3) Create a generic .htaccess file (put it in the directory of where you just put your domain), my file contains these 4 lines:
<Files php.ini>
Order allow,deny
Deny from all
</Files>
4) Clear all of your web browser's cache and cookies
5) Run the install (from your web browser)
www.yourdomainname.com/install/index.php
After doing this, prestashop finally installed and is running beautifully!