MYSQL Connection problem

Hey guys thanks still was not working so...

I deleted everything and started again from scratch. The .htacces file is still giving me problems. I commented out almost everything until it started working.

#
# Apache/PHP/Drupal settings:
#

# Protect files and directories from prying eyes.
 <FilesMatch "\.(engine|inc|info|install|module|profile|test|po|sh|.*sql|theme|tpl(\.php)?|xtmpl|svn-base)$|^(c ode-style\.pl|Entries.*|Repository|Root|Tag|Template|all-wcprops|entries|format)$">
   Order allow,deny
 </FilesMatch>

# Don't show directory listings for URLs which map to a directory.
# Options -Indexes

# Follow symbolic links in this directory.
#  Options +FollowSymLinks

# Make Drupal handle any 404 errors.
#  ErrorDocument 404 /index.php

# Force simple error message for requests for non-existent favicon.ico.
#  <Files favicon.ico>
  # There is no end quote below, for compatibility with Apache 1.3.
#    ErrorDocument 404 "The requested file favicon.ico was not found.
#  </Files>

# Set the default handler.
 DirectoryIndex index.php

# Override PHP settings. More in sites/default/settings.php
# but the following cannot be changed at runtime.

# PHP 4, Apache 1.
<IfModule mod_php4.c>
  php_value magic_quotes_gpc                0
  php_value register_globals                0
  php_value session.auto_start              0
  php_value mbstring.http_input             pass
  php_value mbstring.http_output            pass
  php_value mbstring.encoding_translation   0
</IfModule>

# PHP 4, Apache 2.
# <IfModule sapi_apache2.c>
#   php_value magic_quotes_gpc                0
#   php_value register_globals                0
#   php_value session.auto_start              0
#   php_value mbstring.http_input             pass
#   php_value mbstring.http_output            pass
#   php_value mbstring.encoding_translation   0
# </IfModule>

# PHP 5, Apache 1 and 2.
# <IfModule mod_php5.c>
#   php_value magic_quotes_gpc                0
#   php_value register_globals                0
#   php_value session.auto_start              0
#   php_value mbstring.http_input             pass
#   php_value mbstring.http_output            pass
#   php_value mbstring.encoding_translation   0
# </IfModule>

# Requires mod_expires to be enabled.
#     <IfModule mod_expires.c>
#    Enable expirations.
#    ExpiresActive On

  # Cache all files for 2 weeks after access (A).
#   ExpiresDefault A1209600

  # Do not cache dynamically generated pages.
#    ExpiresByType text/html A1
 #   </IfModule>

# Various rewrite rules.
#   <IfModule mod_rewrite.c>
#    RewriteEngine on

  # If your site can be accessed both with and without the 'www.' prefix, you
  # can use one of the following settings to redirect users to your preferred
  # URL, either WITH or WITHOUT the 'www.' prefix. Choose ONLY one option:
  #
  # To redirect all users to access the site WITH the 'www.' prefix,
  # (http://example.com/... will be redirected to http://www.example.com/...)
  # adapt and uncomment the following:
  # RewriteCond %{HTTP_HOST} ^example\.com$ [NC]
  # RewriteRule ^(.*)$ http://www.example.com/$1 [L,R=301]
  #
  # To redirect all users to access the site WITHOUT the 'www.' prefix,
  # (http://www.example.com/... will be redirected to http://example.com/...)
  # uncomment and adapt the following:
  # RewriteCond %{HTTP_HOST} ^www\.example\.com$ [NC]
  # RewriteRule ^(.*)$ http://example.com/$1 [L,R=301]

  # Modify the RewriteBase if you are using Drupal in a subdirectory or in a
  # VirtualDocumentRoot and the rewrite rules are not working properly.
  # For example if your site is at http://example.com/drupal uncomment and
  # modify the following line:
#    RewriteBase /drupal
#
# If your site is running in a VirtualDocumentRoot at http://example.com/,
# uncomment the following line:
#    RewriteBase /

# Rewrite URLs of the form 'x' to the form 'index.php?q=x'.
#   RewriteCond %{REQUEST_FILENAME} !-f
#   RewriteCond %{REQUEST_FILENAME} !-d
#   RewriteCond %{REQUEST_URI} !=/favicon.ico
#   RewriteRule ^(.*)$ index.php?q=$1 [L,QSA]
#  </IfModule>

# $Id: .htaccess,v 1.90.2.3 2008/12/10 20:04:08 goba Exp $

This is what the server has...

Kernal: Linux version 2.6.16i586 (root@localhost.localdomain) (gcc version 3.4.6 20060404 (Red Hat 3.4.6-3)) #1 Mon Mar 19 16:42:24 GMT 2007 

Sever Software: Apache/2.0.52 (CentOS) 

PHP Version: PHP 4.3.9 (cgi) (built: Apr 17 2009 19:13:06) Copyright (c) 1997-2004 The PHP Group Zend Engine v1.3.0, Copyright (c) 1998-2004 Zend Technologies with Zend Extension Manager v1.0.8, Copyright (c) 2003-2005, by Zend Technologies with Zend Optimizer v2.5.10, Copyright (c) 1998-2005, by Zend Technologies 

The installation went through and Drupal seems to be working, well I'm having problems with changing the logo image. I use the logo image upload in the theme configuration for athemia theme and it doesnt work. I put the direct link in the url field in the browser and it gives this error...

Internal Server Error
The server encountered an internal error or misconfiguration and was unable to complete your request. Your administrator may not have enabled CGI access for this directory.

I checked the server and CGI is enabled.

Seems like permission issues...

Any ideas?

Thanks again to the posters and up coming posters. I appreciate your help.