by Ken Task.
Ok, let me re-phrase that ... does the DB user have access rights to 'write' to the Moodle DB and create/remove tables?
One could have a DB user set to allow that user to read DB's but NOT write to.
SHOW GRANTS; SHOW GRANTS FOR CURRENT_USER; SHOW GRANTS FOR CURRENT_USER();
Does your DB have an 'anonymous' user? Is the DB localhost or on a shared remote system?
Did setting dbsessions create a sessions folder in moodledata? Upon next login was there a file created?
What are ownerships/permissions on moodledata?
'spirit of sharing', Ken