The ASP.NET development server that is used when you select File System for your web project uses ASP.NET authentication for all requests (not only ASP.NET files as is the default for IIS). This means that the Install Wizard fails when you run a new site because the JavaScript files and the images that are used by the Install Wizard are not available - when they are requested DotNetNuke tries to run it's normal authentication and gives errors. This results in the Syntax Error on line 2 error that many have reported because the <script> tag in the Install Wizard gets the error page instead of the JavaScript file.

The start page of the Starter Kit web project says that you can use a File System project, but that doesn't work - unless there is some way to make a File System project authenticate non ASP.NET resources the same way IIS does.

Sean