Having the same issue...
I uploaded the Power Gallery folder to my site via Dreamweaver CS5, but I'm not connecting to the database from there. I'm trying to log in via the WebAssist Installation Wizard and I get stuck on the same page as the original poster, with the same fields highlighted indicating an error. In cPanel, I created the database and set the user, password, and all access on... but that user and password won't work here. cPanel doesn't show me the path to the database, so for the server I'm just entering the actual site domain.
This is on my own server, so this should be working easily... but it continues to hang at the database information. Is there a specific path on the server/host that must be specified?
What am I missing here? Thanks in advance for any help you can provide...