Install hangs step 2 with IIS and PHP 5 CGI

The installation of wordpress is hanging on step 2. The exact function it hangs on is:

<?php
$result = wp_install($weblog_title, ‘admin’, $admin_email, $public);
extract($result);
?>

So I investigated further. I placed breakpoints in the upgrade-functions.php file. Here is the code:

function wp_install($blog_title, $user_name, $user_email, $public, $meta=”) {

//echo(“1”);
global $wp_rewrite;

//echo(“2”);

wp_check_mysql_version();

//echo(“3”);

wp_cache_flush();

//echo(“4”);

make_db_current_silent();

echo(“5”);

populate_options();

echo(“6”);

populate_roles();

echo(“7”);

The great thing here is each time I install it fails at a different break point. So I’m assuming its something to do with the connection to the database. But I have another instance running on the same MySQL server and it works fine, can’t upgrade it, but it works fine.