Just a passer-by insomniac here, but the wizard seems to be looking for the files in the wrong place (../../CMS201/rename_and_upload_this_folder/Connections/PowerCMSConnection.php) - this seems to be the directory path for the PowerCMS files and folders as they would be on your local machine, and as if you were installing it on your testing-server.
The files and folders on your remote server are located in the powercms/ directory.
For instance your 'PowerCMSConnection.php' connection file that set-up is looking for is at: PowerCMSConnection.php
Did you have these files and folders in a defined site in Dreamweaver installing them on your testing-server first? Or did you rename the folder right-away to 'powercms' and upload that directly?
[New Edit] : If you go to that page - powercms/ and go through the stages 1-3 again, do you get the same result?