Hi digitalhead,
I think it's asking for the internet connection to download additional components - depending on which database option you choose: for example, if you choose to install SQL, it will try and download the version of SQL Express that's relevant to your locale. I'm not sure what happens with MySQL, but it could be something similar.
Obviously, for different people all around the world, there are various international versions of components like, so to have a full "all-in-one" installation would mean it would be a HUGE download (containing an awful lot of stuff that each different person would never need).
I just did a fresh install of MediaPortal on a PC that's not connected to the internet, but (as you rightly point out) that means that all the pre-requisites need to be downloaded and installed separately first, before installing TV-Server and the MediaPortal client. I basically downloaded everything on my internet-connected laptop first, then burnt a DVD with everything on it, and used that for the install.
Yes, it does mean a little bit extra work, but to be honest I like to have some control over where all the different bits and pieces actually install to. Plus, I can make sure I've got all the latest service packs for things like SQL, etc.
Take a look at
this page - it includes some instructions on doing a step-by-step installation of SQL, then MediaPortal. Oh, and make sure you have all the necessary
requirements as well!
Cheers,
Craig