michael, you are right. well ... it isn't my first day with dnn today ;)

perhaps i'm wrong ... but i think if you follow http://www.adefwebserver.com/DotNetNukeHELP/DNN4_DevelopmentEnvironment_noIIS/ using dnn 436 without adding the line to the web.config it will not work in my eyes.

take a look here: http://www.dotnetnuke.com/Community/ForumsDotNetNuke/tabid/795/forumid/107/threadid/85242/threadpage/2/scope/posts/Default.aspx

but perhaps im wrong. for me it works now.

michael, you are right. i'm sorry about that. i really appreciate your work; like lots of others.
i had some hard days working on a big dnn based project; a the moment we have a piloting phase ... and well ... i normally use the iis. but now i had to use the bulit-in webserver of vs 2005 because of the customer. whatever i used (436 starter kit or 436 install version) ... the installation of dnn worked fine. but when i tried to open the portal (welcome page (default.aspx)) the connection was refused ("loop forever"). after hanging around with that for some time, i found this thread:
http://www.dotnetnuke.com/Community/ForumsDotNetNuke/tabid/795/forumid/107/threadid/85242/threadpage/1/scope/posts/Default.aspx

for me that looked like a issue with dnn 436 and the vs 2005 bulit-in webserver.
for me it helped to follow the normal installation stepps (as written in your tutorial) ... and adding the line to the web.config like written by shaun.

so i thought it would be a good idea to post, what helped for me. perhaps i have chosen the wrong words doing that. so again: i'm sorry about that.

ok, i did ... step by step like written in your tutorial: http://www.adefwebserver.com/DotNetNukeHELP/DNN4_DevelopmentEnvironment_noIIS

vs 2005, dnn 436 install version. result: same problem. the installation works find, but if i click on "Click Here To Access Your Portal" i get no response. better: the response does not stopp ("loop forever").

how to fix it: just let the setting "use dynamic ports" set to "true" (don't need to change it anymore). edit web.config and add "<add key="UsePortNumber" value="True" />". so you also don't need to restart our vwd anymore. you have do that before starting the installation. that's it.