The help disk sorted it:
" I also noticed that the website is running through our PHP5 server, so I have changed the domains DNS settings so that it will use our PHP5.3 server, which will hopefully allow the Serendipity software to run properly."
That did the trick. Thanks for your patience. Nice ...

Thanks for that. Session support is enabled. See: http://www.oldschoolyard.co.nz/serendipity/php.php
But, session auto-start is off. Does that matter? I have forwarded you reply to the server support desk.
Thanks again.

Hello,
I've been banging my head against this familiar "failed to initialize storage module" thing.
Installation goes fine. All green. It starts with a blank blog OK. Clicking on "login" creates the failed to initialize storage module" error. I have searched this forum and tried creating a tmp ...