Hi Kevin,
It seems likely that you have a server timeout issue. I think the php command is something like max_execution_time or similar. That's why you have to do it from the server directory. I have a site that does the same thing to me.
Yes you can install the database manually. Here is a link to a download of the 6.1.x schema. Rename it to .sql or just copy the contents into your query window.
joomlabiblestudy.org/invisible-downloads...ase-schema-for-6.1.x
However - I'm a little concerned that some of the post file copy actions needed won't be taken due to perhaps some other issue with the server.
So, try to install the db tables manually - this will only work if your db prefix is jos_ - if not, you'll need to edit this file.
Then let me know what happens!
Tom