Installing Drupal

Version: Drupal 7.12
Environment: CentOS + Apache 2.2 + MySQL 5.0.77 + PHP 5.3
Apache is installed by manually "make" and "make install"
PHP 5.3 is installed by "yum install php53"
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the phpinfo(); page is loaded normally without warnings, however
every page in my drupal site is encountered with at least two warnings (while installing and after the site is installed)
for example, now every time I open it in my browser, following lines appear and the "username" and "password" label upon the text-boxes are missing, and it seems something else is missing but I cannot determine what it is...

Warning: in drupal_validate_utf8() (line 1606 of /usr/local/apache2/htdocs/dp_test/includes/bootstrap.inc).
Warning: in drupal_validate_utf8() (line 1606 of /usr/local/apache2/htdocs/dp_test/includes/bootstrap.inc).
Warning: in drupal_clean_css_identifier() (line 3708 of /usr/local/apache2/htdocs/dp_test/includes/common.inc).
Warning: in drupal_clean_css_identifier() (line 3708 of /usr/local/apache2/htdocs/dp_test/includes/common.inc).
Warning: in drupal_clean_css_identifier() (line 3708 of /usr/local/apache2/htdocs/dp_test/includes/common.inc).
Warning: in drupal_clean_css_identifier() (line 3708 of /usr/local/apache2/htdocs/dp_test/includes/common.inc).

HI, I was trying to install Drupal Commerce Kickstart(I just downloaded today it is Drupal 7.12.)
http://drupal.org/project/commerce_kickstart
I uploaded to my server which is Bluehost (I have a resold account). I uploaded everything to "public_html".

I am trying to install drupal 7 and first get this message

Verify Requirement - PHP memory limit 16M
Consider increasing your PHP memory limit to 32M to help prevent errors in the installation process. Increase the memory limit by editing the memory_limit parameter in the file /etc/php5/cgi/php.ini and then restart your web server (or contact your system administrator or hosting provider for assistance)

I have installed Drupal many many times and have never had this error: after I put in the Database info and it starts to install i get Parse error: syntax error, unexpected T_VARIABLE in /home/bevintel/public_html/dev/modules/taxonomy/taxonomy.module on line 891

on line 891 there is

I was trying to upgrade my working 6.2X site to 7.10. I was following the instructions in http://drupal.org/node/548922. When I ran the update.php, the page blanked and nothing returned. When I opened the actual website, the above FATAL ERROR message was all that come up. The same message came up in the admin site.

I set my file permissions in the format of "rwxr-xr-x" or 0777, etc. Once and for all, what should the permissions be for the "default" directory and the settings.php file after the installation is complete? Is it the same for D6 as for D7?
Thanks.
Rick