Cannot install Concrete5

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Hi

Just tried to install and cannot get past the test page. Everything seems to test fine but there is a line at the bottom saying:

There are problems with your installation environment. Please correct them and click the button below to re-run the pre-installation tests.

But it does not say what problems. (See attached)

When I check the error log I see multiple entries of the following:

[Thu Jan 22 10:35:13 2015] [crit] [client xxxxxx] (13)Permission denied: /home/linweb07/t/txyz.com-1042403304/user/htdocs/concrete/.htaccess pcfg_openfile: unable to check htaccess file, ensure it is readable, referer:

I have even tried setting the permissions to 777 on the htccess file but no luck
Any ideas?

*Edit - Ok managed to get beyond it by setting the Concrete folder permissions to 777

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