What I had to do to fix this was drop the database, drop the user.  Then create the database, create the user...add the user to the database as the owner with read write access.  I found that if you unsuccessfully try to run the script some tables will be created...sometimes you can delete this table, edit user permissions, and then retry.  I hope this helps.

It seems that when you set the user you did not specify the user's default database.  If you go into your SQL Studio manager and right-click > properties you can set the user's default database.  That should help ;)

You may have some additional issues with user permissions on your folder that you keep DotNetNuke.  Right-click on the folder > Sharing and Security > and make sure that the Internet Guest Account has the permissions required (ie full control if desired).

I set up the DNN database as the user's default database. I made sure that every user can do everything to the folder it resides in, and even shared it. (The user GORDITO\ASPNET has been assigned evry capability...) Here is the result of the installation attempt: (I give up; this cannot be done!)

ERROR: Could not connect to database specified in connectionString for SqlDataProviderSystem.Data.SqlClient.SqlException: Cannot open user default database. Login failed. Login failed for user 'GORDITO\ASPNET'. at System.Data.ProviderBase.DbConnectionPool.GetConnection(DbConnection owningObject) at System.Data.ProviderBase.DbConnectionFactory.GetConnection(DbConnection owningConnection) at System.Data.ProviderBase.DbConnectionClosed.OpenConnection(DbConnection outerConnection, DbConnectionFactory connectionFactory) at System.Data.SqlClient.SqlConnection.Open() at Microsoft.ApplicationBlocks.Data.SqlHelper.ExecuteNonQuery(String connectionString, CommandType commandType, String commandText, SqlParameter[] commandParameters) at Microsoft.ApplicationBlocks.Data.SqlHelper.ExecuteNonQuery(String connectionString, CommandType commandType, String commandText) at DotNetNuke.Data.SqlDataProvider.ExecuteScript(String Script, Boolean UseTransactions) in G:\VSProjects\DotNetNuke\Library\Providers\DataProviders\SqlDataProvider\SqlDataProvider.vb:line 247 /************************************************************/ /***** Initialization Script *****/ /***** *****/ /***** *****/ /***** Note: To manually execute this script you must *****/ /***** perform a search and replace operation *****/ /***** for dbo. and *****/ /***** *****/ /************************************************************/ if exists (select * from dbo.sysobjects where id = object_id(N'Version') and OBJECTPROPERTY(id, N'IsTable') = 1) begin if '' <> '' begin EXECUTE sp_rename N'dbo.Version', N'Version', 'OBJECT' EXECUTE sp_rename N'PK_Version', N'PK_Version', 'OBJECT' EXECUTE sp_rename N'IX_Version', N'IX_Version', 'INDEX' ALTER TABLE dbo.Version ADD CONSTRAINT IX_Version UNIQUE NONCLUSTERED ( Major, Minor, Build ) ON [PRIMARY] end end else begin if not exists (select * from dbo.sysobjects where id = object_id(N'Version') and OBJECTPROPERTY(id, N'IsTable') = 1) begin CREATE TABLE dbo.Version ( [VersionId] [int] IDENTITY (1, 1) NOT NULL , [Major] [int] NOT NULL , [Minor] [int] NOT NULL , [Build] [int] NOT NULL , [CreatedDate] [datetime] NOT NULL ) ON [PRIMARY] ALTER TABLE dbo.Version WITH NOCHECK ADD CONSTRAINT [PK_Version] PRIMARY KEY CLUSTERED ( [VersionId] ) ON [PRIMARY] ALTER TABLE dbo.Version ADD CONSTRAINT IX_Version UNIQUE NONCLUSTERED ( Major, Minor, Build ) ON [PRIMARY] end end System.Data.SqlClient.SqlException: Cannot open user default database. Login failed. Login failed for user 'GORDITO\ASPNET'. at System.Data.ProviderBase.DbConnectionPool.GetConnection(DbConnection owningObject) at System.Data.ProviderBase.DbConnectionFactory.GetConnection(DbConnection owningConnection) at System.Data.ProviderBase.DbConnectionClosed.OpenConnection(DbConnection outerConnection, DbConnectionFactory connectionFactory) at System.Data.SqlClient.SqlConnection.Open() at Microsoft.ApplicationBlocks.Data.SqlHelper.ExecuteNonQuery(String connectionString, CommandType commandType, String commandText, SqlParameter[] commandParameters) at Microsoft.ApplicationBlocks.Data.SqlHelper.ExecuteNonQuery(String connectionString, CommandType commandType, String commandText) at DotNetNuke.Data.SqlDataProvider.ExecuteScript(String Script, Boolean UseTransactions) in G:\VSProjects\DotNetNuke\Library\Providers\DataProviders\SqlDataProvider\SqlDataProvider.vb:line 247 if exists (select * from dbo.sysobjects where id = object_id(N'GetDatabaseVersion') and OBJECTPROPERTY(id, N'IsProcedure') = 1) drop procedure dbo.GetDatabaseVersion System.Data.SqlClient.SqlException: Cannot open user default database. Login failed. Login failed for user 'GORDITO\ASPNET'. at System.Data.ProviderBase.DbConnectionPool.GetConnection(DbConnection owningObject) at System.Data.ProviderBase.DbConnectionFactory.GetConnection(DbConnection owningConnection) at System.Data.ProviderBase.DbConnectionClosed.OpenConnection(DbConnection outerConnection, DbConnectionFactory connectionFactory) at System.Data.SqlClient.SqlConnection.Open() at Microsoft.ApplicationBlocks.Data.SqlHelper.ExecuteNonQuery(String connectionString, CommandType commandType, String commandText, SqlParameter[] commandParameters) at Microsoft.ApplicationBlocks.Data.SqlHelper.ExecuteNonQuery(String connectionString, CommandType commandType, String commandText) at DotNetNuke.Data.SqlDataProvider.ExecuteScript(String Script, Boolean UseTransactions) in G:\VSProjects\DotNetNuke\Library\Providers\DataProviders\SqlDataProvider\SqlDataProvider.vb:line 247 create procedure dbo.GetDatabaseVersion as select Major, Minor, Build from Version where VersionId = ( select max(VersionId) from Version ) System.Data.SqlClient.SqlException: Cannot open user default database. Login failed. Login failed for user 'GORDITO\ASPNET'. at System.Data.ProviderBase.DbConnectionPool.GetConnection(DbConnection owningObject) at System.Data.ProviderBase.DbConnectionFactory.GetConnection(DbConnection owningConnection) at System.Data.ProviderBase.DbConnectionClosed.OpenConnection(DbConnection outerConnection, DbConnectionFactory connectionFactory) at System.Data.SqlClient.SqlConnection.Open() at Microsoft.ApplicationBlocks.Data.SqlHelper.ExecuteNonQuery(String connectionString, CommandType commandType, String commandText, SqlParameter[] commandParameters) at Microsoft.ApplicationBlocks.Data.SqlHelper.ExecuteNonQuery(String connectionString, CommandType commandType, String commandText) at DotNetNuke.Data.SqlDataProvider.ExecuteScript(String Script, Boolean UseTransactions) in G:\VSProjects\DotNetNuke\Library\Providers\DataProviders\SqlDataProvider\SqlDataProvider.vb:line 247 if exists (select * from dbo.sysobjects where id = object_id(N'FindDatabaseVersion') and OBJECTPROPERTY(id, N'IsProcedure') = 1) drop procedure dbo.FindDatabaseVersion System.Data.SqlClient.SqlException: Cannot open user default database. Login failed. Login failed for user 'GORDITO\ASPNET'. at System.Data.ProviderBase.DbConnectionPool.GetConnection(DbConnection owningObject) at System.Data.ProviderBase.DbConnectionFactory.GetConnection(DbConnection owningConnection) at System.Data.ProviderBase.DbConnectionClosed.OpenConnection(DbConnection outerConnection, DbConnectionFactory connectionFactory) at System.Data.SqlClient.SqlConnection.Open() at Microsoft.ApplicationBlocks.Data.SqlHelper.ExecuteNonQuery(String connectionString, CommandType commandType, String commandText, SqlParameter[] commandParameters) at Microsoft.ApplicationBlocks.Data.SqlHelper.ExecuteNonQuery(String connectionString, CommandType commandType, String commandText) at DotNetNuke.Data.SqlDataProvider.ExecuteScript(String Script, Boolean UseTransactions) in G:\VSProjects\DotNetNuke\Library\Providers\DataProviders\SqlDataProvider\SqlDataProvider.vb:line 247 create procedure dbo.FindDatabaseVersion @Major int, @Minor int, @Build int as select 1 from Version where Major = @Major and Minor = @Minor and Build = @Build System.Data.SqlClient.SqlException: Cannot open user default database. Login failed. Login failed for user 'GORDITO\ASPNET'. at System.Data.ProviderBase.DbConnectionPool.GetConnection(DbConnection owningObject) at System.Data.ProviderBase.DbConnectionFactory.GetConnection(DbConnection owningConnection) at System.Data.ProviderBase.DbConnectionClosed.OpenConnection(DbConnection outerConnection, DbConnectionFactory connectionFactory) at System.Data.SqlClient.SqlConnection.Open() at Microsoft.ApplicationBlocks.Data.SqlHelper.ExecuteNonQuery(String connectionString, CommandType commandType, String commandText, SqlParameter[] commandParameters) at Microsoft.ApplicationBlocks.Data.SqlHelper.ExecuteNonQuery(String connectionString, CommandType commandType, String commandText) at DotNetNuke.Data.SqlDataProvider.ExecuteScript(String Script, Boolean UseTransactions) in G:\VSProjects\DotNetNuke\Library\Providers\DataProviders\SqlDataProvider\SqlDataProvider.vb:line 247 if exists (select * from dbo.sysobjects where id = object_id(N'UpdateDatabaseVersion') and OBJECTPROPERTY(id, N'IsProcedure') = 1) drop procedure dbo.UpdateDatabaseVersion System.Data.SqlClient.SqlException: Cannot open user default database. Login failed. Login failed for user 'GORDITO\ASPNET'. at System.Data.ProviderBase.DbConnectionPool.GetConnection(DbConnection owningObject) at System.Data.ProviderBase.DbConnectionFactory.GetConnection(DbConnection owningConnection) at System.Data.ProviderBase.DbConnectionClosed.OpenConnection(DbConnection outerConnection, DbConnectionFactory connectionFactory) at System.Data.SqlClient.SqlConnection.Open() at Microsoft.ApplicationBlocks.Data.SqlHelper.ExecuteNonQuery(String connectionString, CommandType commandType, String commandText, SqlParameter[] commandParameters) at Microsoft.ApplicationBlocks.Data.SqlHelper.ExecuteNonQuery(String connectionString, CommandType commandType, String commandText) at DotNetNuke.Data.SqlDataProvider.ExecuteScript(String Script, Boolean UseTransactions) in G:\VSProjects\DotNetNuke\Library\Providers\DataProviders\SqlDataProvider\SqlDataProvider.vb:line 247 create procedure dbo.UpdateDatabaseVersion @Major int, @Minor int, @Build int as insert into Version ( Major, Minor, Build, CreatedDate ) values ( @Major, @Minor, @Build, getdate() )