I think it should be stated here that Captivate is designed to allow users from all different levels of proficiency to create courseware.  So even raw beginners can easily start creating simple courseware, while experienced professionals can use the same tool to create very complex learning solutions.

However, I have never seen in any of Captivate's marketing where it guarantees or even suggests that ANY user regardless of their technical abilities can create ANY kind of e-learning solution no matter what the complexities.

What you are attempting with the Internal Server option involves working with web servers and web scripting languages (PHP).  Anytime you delve into this area it requires at least SOME familiarity with web technologies and the ability to debug content or security issues with the web server you happen to be using.

You have very frankly stated that you have little or no such resources, you've struck technical issues, and you are personally unable to solve them.  I respectfully suggest that this is not really Captivate (or Adobe's) fault, and moving to another tool isn't necessarily going to remove your current technical constraints.  It might even add to them.

Having said that....I tend to agree that Adobe could provide a lot more documentation and content around how to implement this particular solution, because there are lots of potential gotchas, especially for newbies.

One suggestion I would make: If you work in a large university, then chances are it also runs Computer Science courses.  Almost any 14 year old hacker knows how to use PHP and set up web servers.  Even if you have no budget to purchase paid resources, surely in such a large university there must be some undergrads or students (think NERDS) that would give you some of their time to help you debug this issue.