Ok, I changed my permissions in each area.
Went back to install.php and went back throught the steps now this is what I get.
We're sorry, but we encountered an error during the installation process...
Unable to create/write to /home/sweetwat/public_html/pp-classifieds/pp-classifieds32/data/1! Check your data directory permissions before continuing.
When you have fixed your permissions Refresh this page to try again.
If you have corrected the error, you may hit GO BACK and try again.
When I FTP the unziped files I created a directory according to the instructions labeled pp-classifieds and when I ftp the files it automatically created the pp-classifieds32 directory. I did not purposly create the second directory.