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I have used bluehost but I installed Magento on my Dreamhost account. Although Dreamhost supports PHP 5.2, i had to manually select it for my domain. Have you tired something like that?
I had a trouble-free installation on Dreamhost, and I’m now learning about how to create categories, products, and bilk export/ import of products via csv. Its worth getting through each hurdle, so please don’t give up hope!