When you're on a shared host like Lunarpages, you'll sometimes need to install drupal in subfolder. Often, you'll want to make it look like the subfolder is the base URL. To do that, edit .htaccess in your domain's public HTML root to redirect requests for pages, as instructed here: http://support.lunarpages.com/knowledge_bases/article/549
You'll need to make sure that the redirect-to-subfolder command in your domain's .htaccess file isn't redundant with the settings.php (in sites/default/) $base_url line. If they're redundant, you'll get an infinite loop during certain tasks.
In sites/default/settings.php, you will have:
$base_url = 'http://www.MY-SITE.com'; // NO trailing slash!
DON'T list the base URL as
$base_url = 'http://www.MY-SITE.com/subfolder';
To prevent an infinite redirect loop with sophisticated external connection applications and other errors, let the .htaccess file in the public HTML root (one folder above the subfolder) do the redirecting. Don't include your subfolder in your settings.php Base URL. This may seem obvious, but it is easy to miss because the redundancy doesn't cause problems until you use sophisticated programs like the fb modules.