The fact that you cannot upload files will cause problems as this means you cannot upload any pictures, packages ... Safe Mode means that your ISP has restricted access to PHP functions and classes. What classes and functions is up to the ISP, there is nothing you can change here, so talk to your ISP.
Whether the problem with the installation was caused by the safe mode or the limited RAM is hard to say (the precise error message would have been useful...). At the end it might not matter much as the safe mode restrictions will hinder the usage of EZ anyway.
Greetings from Luxembourg
Claudia
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