I have installed DNN successfully as a virtual directory and am able to login in locally at http://localhost/dotnetnuke/. 

I then created a website in IIS with the home directory pointing to \dotnetnuke\ folder and created a portal in DNN with the same alias.   When accessing the site, I receive the error below.   Note:  I created a separate directory with a test default.htm and confirmed I can access it (so its not a dns or other issue).

I have not changed any webconfig settings since the install.. and currently have virtual directory to DotNetNuke and the website to DotNetNuke both active.  I also verified that my Network account has all permissions except full control, and my IUSR account has read access.  Any thoughts on where to go to next?

Server Application Unavailable

The web application you are attempting to access on this web server is currently unavailable.  Please hit the "Refresh" button in your web browser to retry your request.

Administrator Note: An error message detailing the cause of this specific request failure can be found in the application event log of the web server. Please review this log entry to discover what caused this error to occur.