Doing the actual setup

Now fire up a browser and visit your new TYPO3 install – you should get redirected to the install tool in 1-2-3 mode. Fill in the database connection parameters and you should get a list of present databases to choose from (if any exist and are accessible to the user entered). If everything went well up to this point, just continue as usual.

If the 1-2-3 more doesn't work, just go to the regular mode and work your way through the setup.

Try not to create a database from within the install tool, this doesn't work anyway (and it probably never will).