Are you installing to a subdirectory? If so, make sure the .htaccess file in Elgg has RewriteBase set, as per the instructions at http://docs.elgg.org/wiki/Install_Troubleshooting#I_installed_in_a_subdirectory_and_my_install_action_isn.27t_working.21
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Security issues should be reported to security@elgg.org!
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