Error 500 When Agreeing to License

My (windows) server stack is:
Apache 2.2.15
Php 5.3.2
Mysql 5.0.7
I don't have a hosting company as I use my own server.

I used to run Zencart 1.3.8 on a previous server, but decided to go for a totally fresh install of 1.3.9e on this new server.

When running /zc_install/index.php I get the info and click "Continue". I then get the license page. I check the button to say I agree and click "Next".
The page then takes sometime to attempt to load and finally gives me a 500 error.

I looked at the patch for php 5.3x but it does say that ZenCart 1.3.9e is already compatible with php 5.3x. I figured it couldn't hurt to try, so I downloaded the patch and uploaded to the server and tried again - with the same result. I deleted the files from the server and completely replaced with untouched version again. I also manually configured both config files to see if that would work but again I agree to the license and recieve a 500 error. So I once again removed and replaced with a fresh untouched version (newly downloaded and unzipped).

I already have a Wordpress blog and Coppermine photogallery up and running, both using php and mysql so I know that they are setup and functioning.

Any pointers in the right direction to figure out what's gone wrong will be much appreciated.

I think the issue was possibly some weird file setting with Win7.
Right click on file and click properties and the configure files had "this file is from a different computer and has been blocked" (even though they were set to read/write for all). Click unblock.
Seems to have fixed the issue.