I have the same issue when installing moodle on powweb. I found that the best solution is to manually create the config file. For this I use a config file from a current installation.
If you would like a copy of my file, I can upload it as a txt file to my site (with my secure info edited out of course).
I would like to add that Marc is loads of help with moodle and powweb. Just wanted to say I'm grateful for the help he has provided in the past.
Installing and upgrading help
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