Your error is ******* >******* >******* > and nothing to do with InstallShield Version, that bit of the log is like the error message string to display if you do have an installshield error.
Check that you can ping your DB and it's hostname and that the db settings is correct. If you are using SQL server, make sure you leave the instance field empty. Check that you can actually connect to the db using the user id and password you have created.
I have this same problem whith this package. This is problem with migration to sd5.1 from 4.5 sp17. HP say that they have migration tools. Please contact with HP. I try install this package installer less - this same error.
Sorry to hear you were sick but happy that you are better and fixed the problem. The instance field is only for Oracle but I it does stuff up the install if you put a value in it for MSSQL. I had the same issue but I didn't check my logs that time.