For me Importer failed first time, but at second try it worked well. Maybe it was temporary DNS or internet issue.
Just install your wordpress where you want and then go to General Settings–>Blog address (URL) and change it the way you like and test your wordpress within another browser tab. If you are not sure. test it via VM or virtualbox by having snapshot of each step and enjoy life
This is common problem. and solution is very easy. just give chmode777 to the directory.
More info can be found here:
http://hecode.com/cant-add-themeswp-plugins-or-install-update/
