The initial Can't Create Portal problem appears to work with the DNN template, so I am not dead in the water, but do have to the portals from scratch. I have edit web.config as well as done an app restart.
When I upgraded to DNN 4.5.3 I tested out both creating templates and Portals both on a localhost before the upgrade and on my PowerDNN production site after. So this appears to be something new.
The PowerDNN support people want to claim that this is a known bug that was introduced in 4.5.4, and hopefully will be fixed in 4.5.6 - go figure, since I am running 4.5.3. They also suggested that I upgrade my account to a more costly one, I'd like to see how that will fix the problem ;=}
As for the localhost upgrade to 4.5.5 and losing Host, I didn't bother to troubleshoot that yet.
Thanks, for the suggestions. The portal stuff in DNN always scares me, most people to use it and it doesn't appear to get tested well in the new releases. That is why I always check