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Rackspace problem with 2.5.8

Hello,

Hi. I'm having a problem installing Joomla 2.5.8 on a Rackspace server.
The initial installation all seems to work fine until I get to the point where I have to remove the installation folder.When I click on the remove button, Error comes up in big red type and the button is greyed out.I remove the install folder manually, and the site appears to fine until I try to install an extension.Every extension I try to install gives me the error 'Unable to find install package'.I wiped everything and re-installed with the same result.Installation works perfectly on my VPS server every time.Has anyone any ideas?

Please help

I didn't find the right solution from the internet.

References:
forum.joomla.org/viewtopic.php
Best video production

Thanks