DNN 4.02 (Source code)
Win XP Pro (NTFS file system, not FAT or FAT32)
IIS v5.1
SQL Express v9.00.1399.06
ASP.NET v2.0.50727

1. Create a directory and unzip the DotNetNuke source file there. (Mine was C:\Inetpub\DotNetNuke_2)
2. Copy Website\Install\DotNetNuke.install.config to Website folder
3. Create IIS Virtual Directory:
1. Control Panel -> Administrative Tools -> Internet Information Services
2. Open Up the tree: Internet Information Services -> MyComputer (local computer) -> Web Sites
3. Right-click on the MyComputer (default web site) and select New -> Virtual Directory
4. Click "Next"
5. Enter "DotNetNuke" for the Alias and click "Next"
6. Browse to C:\Inetpub\DotNetNuke_2\Website and click "Next"
7. Check all the following boxes: Read, Run scripts, Execute, Write. 
8. Click "Next"
9. Click Finish
4. Finish configuring DotNetNuke Virtual Directory (right click on the Directory in IIS, "Properties")
1. Virtual Directory Tab
1. Read, Write, Log Visits, Index this Resource.
2. Execute Permissions: Scripts and Executables
3. Application Protection: Medium (Pooled)
2. Documents Tab
1. Enable Default Document: Default.aspx
3. Directory Security Tab. Left this one alone
4. ASP.NET Tab: Confirm V2.0.5027 is enabled
5. Click "Apply" and "OK"
5. Set up File Access
1. Opene Windows Explorer to DotNetNuke_2 and select Tools -> Folder Options
2. Navigate to the “View” tab and clear the checkbox next to “Use Simple File Sharing (Recommended)”
3. Click “Apply to All Folders”
4. Click “OK”
5. Right click on the “Website” folder and select “Properties”
6. On the “Security” tab, click “Add”
7. Search for “ASPNET”
8. Click “OK”
9. Check all boxes except “Full Access”
10. Click “Apply”
11. Click “OK”
6. Set up SQL Server Express
1. Run SQL Server Configuration Manager
2. Navigate to SQL Server 2005 Network Configuration -> Protocols for SQLExpress
3. Enable everything (Shared Memory was enabled, I enabled Named Pipes, TCP/IP and VIA). I’m not sure if everything is necessary, but I went for overkill.
7. Complete setting up SQL Server Express
1. Open MS SQL Server Management Studio Express (downloadable from Microsoft)
2. Right click on the server and select “Properties”
3. Click “Security”
4. Ensure “SQL Server and Windows authentication mode” is selected
5. Click “OK”
6. Restart the server to enable all the settings just changed
1. Right click on the Server and select “Stop”, then “Yes”
2. Right click on the Server and select “Start”, then “Yes”
8. Create the Database
1. Right click on “Databases” and select “New Database…”
2. Enter Database name (DotNetNuke) and Click “OK”
9. Set up DB login (Windows authentication) (not sure this step is necessary)
1. Expand the Security folder in the tree, right-click on Logins and select “New Login…”
2. Leave “Windows Authentication” selected, click “Search” next to Login name.
3. Enter “aspnet” in the text box and click “Check Names”; it should fill in with the ASPNET ID.
4. Expand database -> security. Right click on Users and and select “New User…”
5. Click “…” next to “Login Name”
6. Enter “aspnet” in the text box and click “Check Names”;
7. Select the checkbox next to the ASPNET ID and click “OK”
8. Click “OK”
9. For User Name enter “DotNetNuke”
10. For “default schema”, enter “dbo”
11. For “schemas owned by this user”, check db_owner
12. For “Database role membership”, check db_owner
13. Click OK
10. Set up another DB login (SQL server authentication)
1. Expand the Security folder in the tree, right-click on Logins and select “New Login…”
2. Select “SQL Server Authentication”
3. Enter the login name (MyLogin)
4. Enter the password (mypwd)
5. Clear the checkbox for “Enforce Password Policy”
6. Select the database from the “default database” dropdown (MyDB)
7. Click OK
11. Make a new copy of resources.config and name it web.config
12. Update web.config in use the SQLexpress section.
1. In <connectionstrings> area,    
   <add
         name="SiteSqlServer"
              connectionString="Data Source=.\SQLExpress;Database=MyDB;User ID=MyLogin;Password=mypwd;Connection Timeout=5"
         providerName=”System.Data.SqlClient” />
2. In <appsettings> area
   <add
         name="SiteSqlServer"
         connectionString="Data Source=.\SQLExpress;Database=MyDB;User ID=MyLogin;Password=mypwd;Connection Timeout=5"
         providerName=”System.Data.SqlClient” />
3. In <providers> area (line 372), added the DNN table prefix
   objectQualifier="dnn_"
13. In the browser, navigate to http://localhost/dotnetnuke.