ANSWERED BY ME: I used a different FTP client (filezilla) and this time it yielded good results. I have absolutely no idea what is wrong with the upload but it might have something to do with secure file transfer - not sure. Before you start deleting your databases or anything else, try using Filezilla (or another ftp client) and reupload your files..
[11-Jan-2012 12:19:37] PHP Question2Answer MySQL query error 1146: Table 'mysite_mydb.qa_options' doesn't exist - Query: (SELECT 'options' AS selectkey, title, content FROM qa_options) UNION ALL (SELECT 'time', 'db_time', UNIX_TIMESTAMP(NOW()))
After spending a good half hour trying to figure out what is wrong with the install and why it sticks on the install button, I found this in the directory error log. Not a permissions error. There is nothing in the empty database either. I had the same inability to install from 1.4 which is why I decided to use the beta.