I imported the tera_dump.sql to the root directory of the site. This is the directory named 'html' that contains files such as index.php, configuration.php, license.php etc. I used the FTP File Manager accessed from Go Daddy hosting Control Centre (Content tab) to upload the file.

Unfortunately I am not an expert on sql so I can't answer your second question. All I know is that I am using Joomla 1.5.22 on my site and this solution worked.

As this thread is linked from the Installation page, I'd add how I managed with GoDaddy (payed hosting).

1. download install package to local machine
2. extract it (to "Mobile-Joomla.1.0-RC2.1" directory)
3. extract tera_dump.sql from Mobile-Joomla.1.0-RC2.1/packages/plugins/terawurfl/tera_dump.sql.bz2
4. replace all "#__" with "jos_" in tera_dump.sql (you can use any good text editor)
5. package tera_dump.sql back into tera_dump.sql.bz2
6. upload whole Mobile-Joomla.1.0-RC2.1 directory to myjoomlainstall/tmp directory
7. edit php.ini/php5.ini in web root directory like this:
memory_limit = 128M
post_max_size = 10M
file_uploads = On
upload_max_filesize = 10M
8. wait until the above settings show up in Joomla Administration: Site > System Information > PHP Information
9. install with Extensions > Extension manager > Install from Directory, the full directory path shall look something like this:
/home/content/12/1234567/html/myjoomlainstall/tmp/Mobile-Joomla.1.0-RC2.1
(you can get your Absolute Hosting Path from GoDaddy Hosting Dashboard. If your Joomla is installed in the web root directory, "myjoomlainstall/" is not needed.)

Thank you, muranyia!
By the way, what is default limits on GoDaddy? That is what could be actual reason for the issue?

Well, I forgot the original limits but they were a lot lower. Maybe 2M for uploads and a 18M memory limit.

Hi Dryabov,I'm ready to download tera_dump.sql and put it in the site root, then reinstall MJ. But that's going to blow out all my mobile templates, isn't it?
Thanks much,
Bill

Oh wait... but I can just manually FTP my css files back into their normal spots. Didn't think about that!

MJ mobile templates are part of MJ extension, and therefore they are overwritten on each update. If you like to modify css only, you can use css/custom.css file (this feature was added in 1.0RC4). Otherwise you should make a copy of mobile template with another name and modify it.

Actually I just brute uploaded all four mobile template folders from my XAMPP right on top of the ones that were on the server. Totally worked. Now if I could just figure out this iPhone issue...