My first reaction is to say "talk to your host". Seems to me they're giving you a tool that fails, and I really suspect it's something on their end. Some questions are in order though. BTW I always install with Fantastico, then drop all the tables in the database through phpmyadmin and delete all the files with FileZilla, then upload the latest release and run the installer again. Fantastico gives me an unpatched v10, and I don't want that.

ANYWAY use your phpmyadmin to see if you have a new database for b2evolution. My Fantastico always calls my databases "bvltN_domain" where N is a number and domain is a few letters from my domain name. Also use an FTP tool of some kind to see if you have any b2evolution folders created. All this is simply to help you help your host by being able to say "it failed on step 2 of 3 and it did/did not create a database and it did/did not install the files".

Once you get it going you absolutely MUST give serious thought to upgrading to the latest release. You don't have to drop the tables, but you should delete all the files and upload the new ones. In this case you tell b2evolution's installation routine that you are upgrading. Oh and before you delete your files you will need to download your installed version of conf/_config.php. Fantastico edits that file to put 4 params for your database, your baseurl value, your admin email id, and changes $config_is_done to '1'. It's important that you transfer all those bits of info from whatever version Fantastico gives you to the latest and greatest version, which I'm sure is what you'll want to start with.