Here is the solution.

Go to Control Panel\Programs\Programs and Features and select 'Turn Windows features on or off

Find and expand Internet Information Services\World Wide Web Services\Common HTTP Features

Check the 'Static Content' checkbox and then click 'OK'

Once the dialog box goes away try running http://localhost/dotnetnuke_community (or whatever), you will also see that you now have your images.

The problem has to do with Windows extracting the ZIP files - it does not extract the .VB files from the ZIP without first "unblocking" the ZIP file.

http://weblogs.asp.net/christoc/archi...

Right-Click the ZIP file you want to extract.

Open the Properties

Click the "Unblock" button and OK to close the dialog

re-extract the ZIP file

Copy the newly extracted files into your DNN directory

Refresh your browser and continue with the installation