Okay.. so I deleted the old website (and virtiual directory) and intalled the 5.1.4 version. Samething... error in the web.config file.. I then installed the AJAX 1.0 as you sugested (not sure that would help with the error in the config file)... same thing... so I opened the config file and commented out the offending line... and tried again.. this is the error I got:

DotNetNuke Error

System.Web.HttpException: The type 'System.Web.UI.ScriptManager' is ambiguous: it could come from assembly 'C:\WINDOWS\assembly\GAC_MSIL\System.Web.Extensions\1.0.61025.0__31bf3856ad364e35\System.Web.Extensions.dll' or from assembly 'C:\WINDOWS\assembly\GAC_MSIL\System.Web.Extensions\3.5.0.0__31bf3856ad364e35\System.Web.Extensions.dll'. Please specify the assembly explicitly in the type name. at DotNetNuke.UI.Utilities.Reflection.CreateType(String TypeName, String CacheKey, Boolean UseCache, Boolean IgnoreErrors) at DotNetNuke.UI.Utilities.MSAJAX.get_ScriptManagerType() at DotNetNuke.UI.Utilities.MSAJAX.get_IsInstalled() at DotNetNuke.UI.Utilities.MSAJAX.RegisterClientScript(Page objPage, String Path) at DotNetNuke.UI.Utilities.ClientAPI.RegisterClientScriptBlock(Page objPage, String key) at DotNetNuke.UI.Utilities.ClientAPI.RegisterClientReference(Page objPage, ClientNamespaceReferences eRef) at DotNetNuke.UI.Utilities.ClientAPI.RegisterClientReference(Page objPage, ClientNamespaceReferences eRef) at DotNetNuke.UI.Utilities.ClientAPI.GetCallbackEventReference(Control objControl, String strArgument, String strClientCallBack, String strContext, String srtClientErrorCallBack, String strClientStatusCallBack, String strPostChildrenOfId, CallBackTypeCode eCallbackType) at DotNetNuke.UI.Utilities.ClientAPI.GetCallbackEventReference(Control objControl, String strArgument, String strClientCallBack, String strContext, String srtClientErrorCallBack, String strClientStatusCallBack, String strPostChildrenOfId) at DotNetNuke.UI.Utilities.ClientAPI.GetCallbackEventReference(Control objControl, String strArgument, String strClientCallBack, String strContext, String srtClientErrorCallBack) at DotNetNuke.Services.Install.InstallWizard.Page_Load(Object sender, EventArgs e) at System.Web.UI.Control.OnLoad(EventArgs e) at System.Web.UI.Control.LoadRecursive() at System.Web.UI.Page.ProcessRequestMain(Boolean includeStagesBeforeAsyncPoint, Boolean includeStagesAfterAsyncPoint)

somewhere in their is some module that is using the old DLL and needs it's reference changed to us the proper one... someone help? I do have VS 2008 Professional (I normally develop Windows applications and the web stuff I'm weak at).