Well, I just installed a copy on my local machine. I’m using WinXP, and just installed Apache 2.0.49, PHP 4.3.7 and MySQL 4.0.20a, and finally WordPress 1.2. Since I’m not trying to host anything here, I just installed Apache for local use only. I believe I installed everything well enough to work, but there may be a few rough edges.
I believe I got some errors like you did, but once I changed the MySQL hostname/username/password in we-config.php, I got a bit farther than you did….
I got my random admin password, and logged in with it ONCE successfully. Ever since then, when I login, or try to access the login script (https://localhost:8080/wordpress/wp-login.php), I just get a page with “Index of /wordpress/wp-admin” and the appropriate list of files. I even registered a new account with the wp-register.php script, but cannot login.