Well, to be honest, I'm not terribly impressed with your host, then.

The autoinstaller uses regular "
ftp functions" of PHP to upload the files. It simply creates a normal FTP connection, and then uploads the files, just like if you did it with a regular FTP client from your own computer. There is nothing unusual or special.
It might not work if your server does not allow the FTP functions of PHP to work properly, or if your host has not correctly configured their servers, or they are using an old version of PHP that doesn't have the functions, or they are just overly paranoid and have disabled FTP functions for php, etc...
With regard to your web host or ISP blacklisting your IP or something... that's just crazy. If they're doing that, then you should find a different web host immediately.
I've heard of some web hosts who automatically block an IP address that tries to connect "too fast". This might be what is happening for you? You see, the PHP software (the autoinstaller) is trying to connect to the same server where the software is running, using FTP functions, and since it's on the same server... the connections are happening very very fast. (Because there is no network travel, etc..) So if your ftp server is not able to keep up with this (ie: It's overloaded server or configured not to allow fast connections, or just poorly configured), then it might have a problem.
I'm not sure what you expect me to do here, because the problem is with your web host. The autoinstaller is using nothing but
standard FTP functions included in PHP. There is nothing unusual or special.
If your web host or ISP or whatever is not going to allow you to use FTP from within a PHP program that is running on the same server, then you'll need to upload the files using a different ftp method.. (ie: Use a normal ftp program like "cuteftp" or "ftp_ws", etc.)
I recommend asking your web host how they expect you to get the files from your computer to their server. Then do whatever they suggest. The autoinstaller is provided as a "built-in" ftp program specifically to get the latest snippetmaster files from the snippetmaster website and put them on your server. But if your web host or ISP doesn't allow this to work, then you can just do it "manually" yourself.
here's the link for instructions:
http://www.snippetmaster.com/download/manual-install.php