Sample configuration

Sorry, just found exactly what I anted in your instruction. However, I would suggest to change some wordings in your instruction as below:

The quickstart package came with theme helps you to build a copy of our live demo at http://demo.drupalexp.com/?theme=palas. It is the highly recommended way for newbies or if you don’t want to go through the individual setup of each module and theme.

STEPS to do:

1. Create a new database in your phpmyadmin/cPanel tools and create database user.

2. Import the supplied database.sql.zip file (located in Packages folder in your package) into this database.

3. Upload the "demo/palas" folder to your server. In most cases you will unpack it under the public_html folder, www root folder (windows hosting) or the root folder of your server.

4. Change the database info in sites/default/settings.php to match the database name, user and password for your new created database.

5. Done. You can login to manage site folow url: http://domain.com/user 

   http://domain.com/demo/palas

    with the default admin account is: username: admin, password: admin.

I did everything you stated in the description above. When I try to log in, I get this.
This is then what i get for any page of the demo.

What am I doing wrong?

Wanted to add, that I don't have the same problem with another drupal themeforest demo.