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XF 1.2 Fresh Install Server Error

Hey there,
I am attempting to do a fresh install of xF 1.2(.2). I have a brand new database, uploaded all of the files cmod the data and internal_data folders to 0777 however once it gets to the install part - after verifying the database details it comes up processing and then:
Server Error

String could not be parsed as XML

SimpleXMLElement->__construct() in XenForo/Deferred/ImportPhrase.php at line 0
XenForo_Deferred_ImportPhrase->execute() in XenForo/Deferred/Atomic.php at line 61
XenForo_Deferred_Atomic->execute() in XenForo/Model/Deferred.php at line 208
XenForo_Model_Deferred->runDeferred() in XenForo/Model/Deferred.php at line 331
XenForo_Model_Deferred->_runInternal() in XenForo/Model/Deferred.php at line 265
XenForo_Model_Deferred->runByUniqueKey() in XenForo/Install/Controller/Abstract.php at line 34
XenForo_Install_Controller_Abstract->_manualDeferredRunner() in XenForo/Install/Controller/Install.php at line 221
XenForo_Install_Controller_Install->actionRunDeferred() in XenForo/FrontController.php at line 337
XenForo_FrontController->dispatch() in XenForo/FrontController.php at line 134
XenForo_FrontController->run() in /xxx/xxx/public_html/xxx/install/index.php at line 18
I was hoping that someone here may have some ideas on how to fix it and allow me to install my xenforo site.

Any helps, ideas or suggestions would be greatly appreciated - I'd try anything to get it done.
Thanks Digital Doctor that was the first round of things I did.
When I read Brogan's post I was a little angry thinking well I have been trying for like 24 hours uploading and uploading and still nothing, but I bit my tongue and downloaded WinSCP and uploaded my file... Again... really I wanted to turn around and shove it in his face saying "nah nah nah nah nah you were wrong"... and then the worst thing happened...

Once it was uploaded I went to the site -> enter your database details... I did.... Processing.... Here I was waiting for the error to appear.... then it installed... humble pie in my face... dripping down my chin.... and now I am here with my tail between my legs saying the same thing I say to my wife "You were right!" Brogan thanks for the help it has now installed and I can now work on my website.

I thank you for all of the assistance.