I'm now reliably getting IIS to connect to the directory containing my test site files. I double checked all the settings you referred to and they are correct. However, I'm still getting database connection errors. The last error I got was this:
DotNetNuke Upgrade Error
The Assembly Version ( [ASSEMBLYVERSION] ) does not match the Database Version ( [DATABASEVERSION] )
ERROR: Could not connect to database.
A network-related or instance-specific error occurred while establishing a connection to SQL Server. The server was not found or was not accessible. Verify that the instance name is correct and that SQL Server is configured to allow remote connections. (provider: Named Pipes Provider, error: 40 - Could not open a connection to SQL Server)
You commented that I can't use pipeline mode for DNN 4.3.5 - this error looks as though I may inadvertently be using it? In IIS the application pool is set to CLASSIC and I don't see any other IIS controls that relate to pipeline mode. The string "pipe" doesn't exist in my web.config. What would I do about this? As a possible relevant comment, the database I'm trying to connect to, on SQL Express 2005, was restored from a database backup of my production site, which is SQL Server 2000. I didn't think this would be a problem, is it?
I've changed my configuration string after reading the SQL manuals, this is what I'm now using, since my SQL server is on the same machine as my IIS:
<connectionStrings>
<!-- Connection String for SQL Server 2005 Express - set up for KEI Laptop -->
<add name="SiteSqlServer" connectionString="Server=(local);Database=oaklandsymphonychorus;uid=oscuser;pwd=mozart;" providerName="System.Data.SqlClient" />
</connectionStrings>
<appSettings>
<!-- Connection String for SQL Server 2005 Express - kept for backwards compatability - legacy modules - set up for KEI Laptop -->
<add key="SiteSqlServer" value="Server=(local);Database=oaklandsymphonychorus;uid=oscuser;pwd=mozart;" />
[ additional lines snipped ]
</appSettings>