Thank you for your help Jason. I really appreciate you.
I reinstalled Snow Leopard, because I read in an Adobe article, that you can not have Mysql already installed on your machine. Then I downloaded MAMP, and was able to create a site that connected to a database. I turned off web sharing as well.
I was able to import Blue Sky database into phpadmin, however the Blue Sky completed store files are mostly read only, and (gear.php) won't display in the browser. Do I have to change ALL of the files to read & write, in order to test the sample completed store website? Is there some way to get around manually changing each file to read & write?