Howard is correct. This error normally shows up when the php version is not compatible. It is possible that your host has a higher version and you just need to switch to it. You would be much better off to install manually than to use an installer program as it would give you full control over the installation and you would not have to deal with any added "stuff" that the installer does to your install.
As to upgrading from 1.6, it is going to be a long process. There are several interim steps that you need to go through. If you can get it to 1.9 then you could export your courses and import them into your new installation which might be the best way overall. Someone might correct me, but I think that you have to be on 1.9 or later to import courses into the newer versions and you cannot import the users that way, just the course content.