One thing I did notice is your PHP include path:
(include_path='/usr/local/php/includes:/usr/local/lib/php:/usr/share/pear')
It's not including the current directory. Normally that would look like this:
(include_path='.:/usr/local/php/includes:/usr/local/lib/php:/usr/share/pear')
On step closer
now when i run it....i get:
All tables created. Your database is ready for your import.
running importer now.....
