Asingh, did you ever get this resolved?
I too am having the exact same issue. I have completely removed everything (except the cpanel files) from my domain and each fresh install (manual or fantastico) has the blank permalinks page right from the start. I have 5 other wp blogs hosted by the same people and none of them have the issue.
I’ve emailed my host to see if anything can be done. Will advise if successful.