Ok, I've now resolved my PHP / MySQL errors and downgraded my PHP to 4.4.3 and we are working ok.
However, at step 3 I get the below fail messages. The database is setup, the permissions are set and I can talk to the database through the admin panel, but for some reason the install will not see it ?
Here we are checking your database connectivity and permissions. If any of these checks fail you will need to correct the errors in order to proceed.
Connecting to server FAILED
Connecting to database FAILED
One or more of the above checks failed. Click the button below to return to the previous screen to verify your settings.