well i installed 1.0.6 and i still got the same error
/public_html/tmsmf/Packages/temp/Themes/babylon/): No such file or directory"
and it took me awhile to figure out how to restore the data base from my original board to this new one using myphp. i could not get it to work until i saw a thread about changing the database setting in Settings.php so i changed it to the the same prefix as the old table and it worked.
after all that tp would still not install so i put on 1.1 rc2 and tp went in with no problem!!!!!
also this from the install directions
"Go to Package Manager > Installation Options > Cleanup Permissions > Select All are files writable and click on "Go""
is only found in 1.1 rc2