Thanks Cathal, I'll give that a try.

How do I set that in the .net configuration tool? Not very familair with the config tool.

Thanks

Gave that a try, but it did not change anything. I'm still unable to install on that directory. Error when creating My Website.

When I browse to the site locally on the server, I get the message below. When I do a refresh, it kicks off the install. There must be a relation:

DotNetNuke Configuration Error

Could not find a part of the path "D:\Websites\intranetTest\Config\Backup_2006871449\web_.config".

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 Enable Simple File Sharing before these options are displayed ). Select the Security tab. Add the appropriate User Account and set the Permissions.

If using Windows 2000 - IIS5
- the {Server}\ASPNET User Account must have Read, Write, and Change Control of the virtual root of your website

If using Windows 2003 - IIS6
- the NT AUTHORITY\NETWORK SERVICE User Account must have Read, Write, and Change Control of the virtual root of your website

How about install on C: as you did before and then move the install to the share and point the virtual directory to the share. 

Have you also tried removing and recreating the share?  I haven't noticed it as much lately; but, I've experienced some intermittent access issues with shares that were resolved by recreating.