I saw that issue being addressed a few times, and I'd like to contribute to help.

If, for some reasons you cannot install a component, plug in or module... here is what you need to do:

1. Change the php.ini files (approx. about lines 230-232 of the files) to:

max_execution_time = 120; Maximum execution time of each script, in seconds
max_input_time = 120; Maximum amount of time each script may spend parsing request data
memory_limit = 128M ; Maximum amount of memory a script may consume (8MB)

2. Change the index.php file in /yoursite/administrator/index.php to (add the 2 lines right below // Set flag that this is a parent file)

// Set flag that this is a parent file
set_time_limit(300);
ini_set("memory_limit", "128M");

define( '_JEXEC', 1 );

define('JPATH_BASE', dirname(__FILE__) );

Save your file.

Now install your module, component or plugin... ET VOILA!

If you are un-sure where your php.ini file is, contact you web server administrator.

If you are running local, simply find your php.ini file inside your MAMP or WAMP.

PEEEEEEAAAAAAAACE!