I usually have a DNN site up and running first before I install the starter kit.  I do everything manually by taking the 4.3.4 folders placing them in my virtual folder c:\dnn and open the web.config file in notepad and update the connection strings with the info of my database that created manually also.  Once that is done I open that website and I can see all my folders and files in Solution Explorer in VWD or VS2K5.  When that is done I extract the starter kit to my c:\dnn folder and double click the VS Content file to run the install.  Once the install has ran you must go back to the root folder in the Solutions Explorer window and right-click > "Add new Item" Now you should notice a popup window that gives you options.  You will see a mod and skin template. (change code to VB for skin template) Then you click on the template you want and just click "Add"  Its smooth sailing from there.

Check here for a visual demonstration -->>   http://pdmlogin.com/StarterKitInstall/tabid/77/Default.aspx

-Mark