I don't really understand what you wanted to achieve with these rules... every request _ almost_ will be forwarded to the webdav handler, is that what you want ?
Have you increased the memory limit of php. If you don't increase it ezPublish will fail with your warning before it ever gets to complete installation.
Do a search for php.ini (locate php.ini on Linux) and look of the line that says " memory_limit =xx" xx being the set memory and increase it to 12 megs or higher. Mine is set to 25M as in
memory_limit = 25M ; Maximum amount of memory a script may consume (8MB)
Fatal error: eZ publish did not finish its request
The execution of eZ publish was abruptly ended, the debug output is present below.
without any additional PHP error, then it probably means you didn't enable display_errors ( http://www.php.net/manual/en/ref.errorfunc.php#ini.display_errors ) in php.ini. You should enable it while developing your site. Additionally, set error_reporting level ( http://www.php.net/manual/en/ref.errorfunc.php#ini.error-reporting ) to E_ALL. Don't forget to restart your webserver afterwards.
If you ever encounter a fatal error again after applying these php setting, you will get the full PHP error message displayed on your site. That message will tell you more about what exactly went wrong.
