I'm getting the same error. Did you get it figured out?

Open ../blogs/conf/_basic_conf.php and change these settings, replace the data with your settings:

$db_config = array(
   'user'          => 'demouser',     // your MySQL username
   'password'      => 'demopass',     // ...and password
   'name'          => 'b2evolution',  // the name of the database
   'host'          => 'localhost',    // MySQL Server (typically 'localhost')
);

(snip)
$baseurl = 'http://localhost/b2evolution/blogs/';

(snip)
$admin_email = 'postmaster@localhost';

(snip)
$config_is_done = 0;

Now upload this file to the server (in the ../conf/ folder; replace the existing _basic-conf.php and try to run the installer again.

More information on the install is at: http://manual.b2evolution.net/Install_b2evolution#Installing_b2evolution.

Good luck

Same problem here.

Warning: main(/home/iconnect/public_html/blogville/blogs/conf/_basic_config.php) [function.main]: failed to open stream: Permission denied in /home/iconnect/public_html/blogville/blogs/conf/_config.php on line 20

Fatal error: main() [function.require]: Failed opening required '/home/iconnect/public_html/blogville/blogs/conf/_basic_config.php' (include_path='.:/usr/lib/php:/usr/local/lib/php') in /home/iconnect/public_html/blogville/blogs/conf/_config.php on line 20

I have
$db_config = array(
'user' => 'notrevelled', // your MySQL username
'password' => 'notrevelled', // ...and password
'name' => 'iconnect_evolution', // the name of the database
'host' => 'localhost', // MySQL Server (typically 'localhost')
);
$baseurl = 'http://localhost/iconnect_evolution/blogs/';

Can not get passed here.