The PHP settings can often be overridden in such a scenario by creating a .htaccess file and placing it in the eZ Publish root directory. PHP settings can be added to it. Whether or not they will have effect depends on how the server is configured.
The database [db339530096] cannot be used, the setup wizard wants to create the site in [utf-8] but the database has been created using character set [iso-8859-1]. You will have to choose a database having support for [utf-8] or modify [db339530096] .(I also put up a screenshot at http://jacksonhartsfield.com/dbproblem.jpg )"
And of the database settings: http://jacksonhartsfield.com/mySQL.jpg
It would be fastest to re-create the database using the CREATE and GRANT commands found in the installation instructions. No need to spend a lot of time troubleshooting why the existing one isn't working. If you don't have access to mysql command line, or Linux command line, consider getting that--the time saved well worth the money. At the very least I recommend setting up your a environment on a server you have total control of (even if it's a Windows laptop).
An alternative might be to set up the msyql database on a different computer, then import that database into phpmyadmin.