when i go to install i get error jeolder::create:Could not create directory...

all my folders and files are set to 777 please help

First problem - don't use 777. That is a massive security risk in Joomla. Folders should be 755 and files should be 644. If you felt the need to go to 777, then you probably have an ownership issue. If you are on VPS or a dedicated host, your Joomla files probably need to be owned by apache. If you are on shared, then you should be okay with your files owned by the FTP ID.

What kind of hosting do you have?