One more clue. I went to a different site on a different host (DreamHost). I made the change to the wp-config.php exactly as you say to and tried to do the upload through the WP admin Install Themes. It won’t let me get as far as the other hosting service would. I get a message that says: “Are you sure you want to do this? Please try again.” Perpetually. Can’t get past that.
With the first site, the one where we intend to use Alyeska, we could get to the Preview/Activate portion of the install.
I don’t know if this gives you any more clues as to the issue, but thought I’d let you know. DreamHost is the hosting company for the site I set up in June, which works perfectly.
The one that works on DreamHost, installed June 2012: http://www.hearthavenpublishing.com/
The one that doesn’t work on WestHost (it has a holding page up right now): http://heart-t-heart2.org/