2
Check your web server configuration, if is proper (mainly untouched by unexpirienced user - candidat administrator), XOOPS can be installed from everyhwere:
even from
http://localhost/ - such as /var/www/localhost or c:\wamp\www
or from
http://localhost/~user - such as home/user/public_html
or from
http://localhost/~user/folder1 where is home/user/folder1
there is no matter where XOOPS will be placed, it not depend on the XOOPS 1.2 installer (there is no pre-configuration for it such as Dragonfly 9).
May The Source Be With You!