David (and everyone else in here who's advice I have thus far used) - thanks very much for all your help so far. I just thought I should do a quick summary of what has happened with my install over the last few days that I have wasted doing this. It has become a long thread now and I know that most people will just read the stuff at the end, so hopefully this will help them.
As it stands now, I finally have a working spell checker, but I still get the problem of the spell checker window not opening in front (on Firefox). I might go and investigate this one myself unless someone else has already found the answer to fix this?
Here?s what I?ve done so far to get to this point:
I removed the code from the xml file (
as suggested earlier by Pyrix - the bit which removed the database after it created it). I removed the dictionary.dic file so it was not referenced during the running of the xml file. This (as expected) did not spend ages installing and hanging somewhere before 99%, but immediately installed.
Now looking at my database from phpmyadmin, I can see the vbspell table has been created.
Then I import the database (the fullsql one
posted by replicators) using BigDump,
as suggested by Steadicamop. The vbspell table is now populated with the dictionary words when I check from phpmyadmin.
At this point the little "ABC" spelling check icon appears in my edit box
as described here, but the spell check window hides behind the main one (which was meant to have been fixed in v0.10.2)

This seems to be last great un-addressed issue that many people (including myself) still get.
I really like this plugin (as it really is the only option for something that should be built into all forums, of not built into all web browsers). Credit to Cynix2 for getting it this far. I look forward to the next release and I hope all these issues can be squashed soon.