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The archive is storing all the files in a subdirectory called images/ - hence the xml is not found at installation - this should be changed.
Secondly, the theme.xml file that is there is incorrect (at least according to my knowledge). It is the same file that is there with the default theme - while the transparent theme has a separate set of files.
I have the same problem with the default transparent theme.
The package of the default theme without transparent works.
So it could not be a problem with the permissions.
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Jan wrote:Try to see if you have permissions and ownership to overwrite the files, if the ftp layer is enabled
As DaSilva points out, I can install other themes. I tried Nature and default and they both work. It is just the default theme that does not work. So, the problem is somewhere else.