Same issue. I'm on cPanel/WHM. Seems OP was never able to pass that step and gave up, since their website is down.
Guess I have to give up on this. I spent hours getting everything setup and even fixed some bugs in the index.php install script, still no luck since I can't get past the database. Guess I'm out of luck.
I tried both
localhost (which would be used if it were WP)
and
mydomain.com
and
server.myserver.com
none work, it just says "error".
wp never gives me such an error. I doublechecked and my DB name, DB username, and DB user pass are all 100% correct. The problem is the script.