Installation issues with 1.4.8

I have downloaded 1.4.8 and created a subdomain with a directory pointing to a subdirectory of my website.

When I enter the url subdomain/index.php/setup it incorrectly resolves the full folder path.

I tried installing it to localhost and again it resolves the path incorrectly. here is the url it returns:

http://localhostc/inetpub/wwwroot/quotes/index.php/setup/language

Obviously this is wrong, altering this http://localhost/quotes/index.php/setup/language does download the correct form but then fails once continue button is selected.

Can anyone give me a correction to this issue?

Managed to find a workaround to this issue by doing a bit more searching on the forum.
First delete or rename the .htaccess file then edit application/config/config.php to alter the line:

$config[‘base_url’] = $config[‘protocol’] . ($_SERVER[‘HTTP_HOST’] ? $_SERVER[‘HTTP_HOST’] : $_SERVER[‘SERVER_NAME’]) . URL_SUBFOLDER;

to

$config[‘base_url’] = ‘http://yourhost/yoursubfolder/’;

Obviously change yourhost and yoursubfolder to something appropriate for your website.

Having made these changes I was able to perform the installation procedure and get on to the application.

Clearly this is just a workaround, there is an issue here to be resolved but for my purposes it works.