Hi, I've got the same issue when Better WP Securiry function "Remove write permissions from .htaccess and wp-config.php" is activated.
Turning this on will set the unix file permissions to 0444 on these files and turning it off will set the permissions to 0644.
W3 Total Cache Error: Files and directories could not be automatically created to complete the installation.
Edit file /mysite.com/.htaccess and remove all lines between and including # BEGIN W3TC Page Cache and # END W3TC Page Cache markers.