In case anyone else suffers the same problem with PS3, this is what I've done so far whilst attempting to get it to run locally.
I continued searching around the www to find someone with knowledge about getting round this PS3 foible. I managed to resolve the issue by, first of all, uninstalling Wampserver, then installing Xampp. The simple deletion of the semicolon mentioned on a few other forums didn't work with Wampserver, but once Xampp was installed, this did the trick.
So, now I can get past Step 1 of the simple installation wizard but get the same issue as mentioned at the head of this thread. Anyone know what is the name of the database I enter when PS3 has all the files copied to the local host folder? Screenshot attached.