Past the initial install
I finally got past the initial installation.
Some settings that might have played a part in my problems:
HelpDesk URL:
Changed http://localhost/pathtoapp(http://localhost/pathtoapp) to http://127.0.0.1/pathtoapp(http://127.0.0.1/pathtoapp)
MySQL Hostname:
localhost
Problem fix - Beside GRANT ALL to dbname.* TO 'dbuser'@'%' ,
I also did GRANT ALL to dbname.* TO 'dbuser'@'localhost' and
GRANT ALL to dbname.* TO 'dbuser'@'127.0.0.1' . Only after setting privileges with hosts 'localhost' and '127.0.0.1' was I able to do the first part of the installation without an error.
BUT - since v1.6 RC3 is now available - I'll do it all over again with RC3!
Big fun :)
PS - in my installation of MySQL, GRANT ALL does not include the GRANT privilege, so I don't have to revoke it.