"Step 1 will let your review and/or set your options in config-inc.php. Your config-inc.php MUST be writable by install"
Technically writable is 666 all read all write
777 is all read all write all execute
I think the 777 there is a typo by Michael when he tried clarifying the instructions better for people about a month ago. The line above as I posted has always been there. I beleive he added this "Change permissions to 777 and run again" later as its the first I saw that part as I never actually read the reworded install docs yet.