Don't bother manually setting up the db. Just make sure you have A database (blank is fine).
Now put the PHPFusion package in your root directory and point browser to localhost/install.php or whatever the setup file is called.
Things should go smoothly from there...
By the way, given your last issues with the blank page, I'd suggest downloading the PHPFusion latest version again and make sure you're not just downloading the upgrade...
Dan
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