I did look into the disk space quota assigned. I have a VPS with WHM/Cpanel installed and i have no quota on the account and there is plenty of free space on the server.
It does seem to be a PHP or permission error. Any hints on how to fix it are appreciated.
space allocated for you may be different for web and MySql os that is one possibility. The other is that you haven’t created your database and Piwik is trying to do it with the wrong userid. If that is the case, then create the database schema manually and then piwik will just create the tables in it when you install.