I sent a ticket for support to lastdigital.com
I deleted the new database then logged into phpmyadmin.
I then went back to the hosting control panel and made a new database again.
I then refreshed phpmyadmin and the database is listed as active and configurable.
Now i'm installing XOOPS CMS again.

I have recieved the following errors:

Warning: main(./class/textsanitizer.php): failed to open stream: No such file or directory in /home/virtual/site58/fst/var/www/html/install/index.php on line 51

Warning: main(): Failed opening './class/textsanitizer.php' for inclusion (include_path='.:/php/includes:/usr/share/php') in /home/virtual/site58/fst/var/www/html/install/index.php on line 51

Fatal error: Undefined class name 'textsanitizer' in /home/virtual/site58/fst/var/www/html/install/index.php on line 52

Hmmm???

Your missing the file XOOPS_ROOT/class/textsanitizer.php
Just upload it

Thanks! All sorted!