I got past that open basedir problem with these instructions:
http://www.antagonist.nl/help/apps/joomla/...reate_directoryChanging the line
if ($obd != null)
to
if ($obd != null && false)
in the file libraries/joomla/filesystem/folder.php
But still I had the problem of Joomla not being able to create the directories. No problem, I created the template directory myself and inside it my css and image directories AND gave them 777 permissions. Install successful! Changed the permissions to 755 after the install. Whew, I was afraid for a moment this would be impossible!