Ive tried it, but again anything under the Magento directory still comes up with 500 server error - so atleast I think its the correct path, but not sure of the cause. Ive been searching through allot of forum threads, but nothing too specific.
I could upgrade to php 5.2.5 but I know their are still a few issues and im not keen on going to it until atleast 2.5.6 appears.
Any other suggestions? would it still work on 5.0.4 if I just commented out the php version check?
the cgi work around will work - but if you have already installed magento (without the cgi workaround) you should try the following process (works for us every time when we get the 500 errors) - using ftp
1) Delete the complete magento installation from your server and delete all database tables in your database (backup first)
2) Upload the cgi compiled php to the cgi-bin folder (force your ftp program to use binary for this upload, if you are using ftp)
3) Ensure the php5-cgi file has permissions of 755
4) Change the ftp program back to auto mode.
5) FTP up all of the Magento v1.0 files to your server
6) Before you do anything else (i.e. before trying to execute any php script) change the .htaccess file to use the cgi workaround - that is uncomment these 2 lines:
Action php5-cgi /cgi-bin/php5-cgi
AddHandler php5-cgi .php
....and of course save the file........
7) Change the directory permissions, as per the standard install, on the var, media and app/etc directories
8) Point your browser at the magento folder and start the install process.
Off you go.
I am not sure if all of these steps are absolutely necessary, but it works for us.