This is a check to see if the folders that require write access, have the correct permissions.

I think the install will be folders:
/config
/files
/packages

You will need to make sure that these folders are writable by the web server.
If you are running C5 on a mac or linux machine, you'll want these to have permission '755'. I'm fairly certain the C5 zip unzips with the correct permissions already in place for the folders.

If you are running on a server, check the permissions as they may have been changed.

I guess the question is, what environment are you running C5 on?

I'm using Just Host which is Linux. So I need to make sure that permissions are 755 on those folders you listed?

Yep, try 755 for those directories.