Hi,
I don't know, if this is enough for the Virtual Host.
Usually, you may want to use a rewrite rule, but i think ez 3.4 can live without this.
Does accessing the page with http://localhost/ezpublish/index.php work any better?
You must have "index.php" in the URLs, that are opened, when you click on "next". And you need AcceptPathInfo to be on, but i see, that this is fine. What URL do you have, when you get the error message?