I have this error when installing piwik in my hosting provider server
http://stats.outlinemedia.pe/
I put 777 permissions to the folder tmp but I had the same error
Perhaps your hosting provider disabled mkdir? (Look in php.ini for disabled_functions.)
If that’s the case, manually create these folders and make them writeable by the web server user.
mkdir tmp/templates_c
mkdir tmp/latest
mkdir tmp/cache/tracker
(I’m not sure how you put 777 on tmp, seeing as your host is a Windows IIS server.)
You might be able to edit config/global.ini.php and hardcode the absolute path for compile_dir, under the [Smarty] section.
That said, it looks like a broken version of PHP. So, you’re going to have no shortage of problems with that host…