Well after hours and countless fresh installs of the OS I have finally made it through the mysql install. As Olli was saying it didnt seem like mysql was starting up which might have been but we got past that as well looking through my log file. I did yet another fresh install and again ran into the same problem, but I also tried something else as well. Below is what came to make it work and finnish the install. The only thing I can see is that now I have a mysql.sock in both /mysql and in /mysql/.protected but everything seems to work fine. It actually does seem like mysql was not starting by doing what I did here.
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Updating MySQL privilege database...
failed
svr1:~ # cd /usr
svr1:/usr # /usr/bin/mysqld_safe &
[1] 9083
svr1:/usr # nohup: ignoring input and redirecting stderr to stdout
Starting mysqld daemon with databases from /var/lib/mysql
netstat -tap | grep mysql
tcp 0 0 *:mysql *:* LISTEN 9117/mysqld
svr1:/usr # mysqladmin -u root password ********