The installation script makes all the important changes on its first run... rerunning it will throw a error. That is not important however, the error mysql error: Duplicate column name 'collapsed' does show that the installer worked.
Now as for the collapse not working check that the javascript contained in "forumhome_expandjscript" has been added to the page and that forumhome_level2_post does contain
<tr id="f$forum[parentid]z$z" $fhomeexpandstyle align="center">
and yes there should be two 'z''s (only in v1.11)
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