When you say "root of the hosting account" it sounds like you are saying that you can't upload to the root of the domain. If that is the case, there must be something wrong with the way the hosting account is setup.
I'll do some more testing when I get to the office. Maybe the WA guys can shed some light on the folder requirements.
Just to be clear:
- You created your DB under the domain account
- Uploaded the files to a folder
- Ran the installation wizard
and it didn't work in that configuration?
p.s. are you saying host account as in one account on the web host provider's server, or hosting account as in a reseller's account with multiple domains?