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I solved this problem by adding the hostname of my store to /etc/hosts thus
127.0.0.1 develop.hostname.com
This sorted the ‘This Url is not valid’ problem for me.
If this sounds a little crazy, it’s not as daft as it seems. It would appear Magento installer does a quick check to see the URL you enter is accessible and my fire wall was blocking packets coming back in from the same as source IP address. By specifying the local ping-back address (127.0.0.1) magento installer could verify the Url without going past the firewall - viola!!
I guess that was a rare case for me, but who knows it might help someone else along the way.
Stew
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