After Localhost 5.4.2 died on me uninstalling a module I wrote, I was forced to install fresh copy of 5.5. I did it by deleting every file in my dotnetnuke directory and leaving the dotnetnuke directory in place so that I did not have to change IIS or security settings. However after placing all the insall files into the directory I get the following:

DotNetNuke Configuration Error
Access to the path 'C:\Inetpub\wwwroot\dotnetnuke\web.config' is denied.

Your DotNetNuke installation appears to have a security settings problem (most likely permissions). DotNetNuke has extensive file upload capabilities for content, modules, and skins. These features require custom security settings so that the application is able to create and remove files in your website.

Using Windows Explorer, browse to the root folder of the website ( C:\DotNetNuke by default ). Right-click the folder and select Sharing and Security from the popup menu ( please note that if you are using Windows XP you may need to Disable Simple File Sharing before these options are displayed ). Select the Security tab. Add the appropriate User Account and set the Permissions.
Your Operation System appears to be Windows XP

I am running Win XP, IIS 5.1, SQL Server 2008 (not Express).
My ASP permission to dotnetnuke remain at full permissions as the note says they should be.  Something else must be the cause.  I would be greatful for any help.