Problem with installing game arcade script on my site

This is the installation instruction.

INSTALLATION

I. THE SCRIPT
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1. Unzip the package in an empty directory

2. Upload everything located in the "Upload" folder to your server.

3. Change files/folders attributes:

3a. In case PHP is running as an Apache Module or you are not sure
how is it actually running:
- all folders in the "content" folder: 777
- all files in the "content/blocks" folder: 666
- folder "docs": 777, all html files in it: 666
- folder "include": 777
- in the "include" folder files comments_config.php, blocks_config.php
and pages_config.php: 666
- in the template folders (Toys, etc.) all html files : 666

3b. If PHP is running as CGI module:
- inside include folder: sitesettings.php, dbsettings.php: 600
- content folder: 751
- content/blocks folder: 700
- include folder: 700


4. Create a new mySQL database on your server (ask your hoster if
you don't know how to do that), remember its name, username and
password, you will need all that on the next step.

5. Open www/yoursite.com/install/ in your browser and follow the
instructions.

6. Once the installation process is done, remove the "install"
folder from the server.

I have follow all these steps but on step 5 where i type www/mysite.com/install/ in browser i got errors:
ERROR: Specified ROOT dir [templates/] is not a directory
ERROR: Cannot open template. Root not valid.

Please help i am newbie.