During database setup the following fatal error may occur in the web-installer on some systems:
Fatal error: Call to undefined function _user_password_dynamic_validation() in /var/www/localhost/htdocs/drupal/install.php on line 727
It can be solved by modifying the system table of your Drupal database:
mysql -u -p
UPDATE system SET status = 1 WHERE name = 'block' OR name = 'user' OR name = 'node' OR name = 'filter';
Then reload the installer page on which the error occurred and your installation wil continue.