Thank you, Thank you, THANK YOU HENSON!!!, for making this easy to understand Installation Guide.
I had been struggling with my installation for quite some time, when I found this posting yesterday.
A special thank you, for stating that the order of the changes is irrelevant. The original instructions made it seem like it was obligatory to make everything in the right sequence.
Couldn't beleive something so simple, could be made so hard-to-understand, when following the "official" Installation Guide, but it could!
So, I followed your instructions and pointed my browser to localhost/dnn/ and received an error saying: "Error, the database already exists" or something like that.
Then I thought, OK - another misleading instruction. But... when thinking again, I found that your instruction didn't mention anything about changing the "database-owner" parameter in the web.config-file. So, I removed that change, and voilá, everything worked perfect.
Maybe one addition to your instruction could be: "DO NOT CHANGE THE DATABASE-OWNER SETTING"
My configuration is as follows, and though it is not the same as yours, it still works!
Windows XP Professional - SP2,
IIS 5.1 (delivered with XP),
SQL Express (SQL Server 9.0.1399),
MS SQL Server Management Studio Express. Version 9.00.2047.00,
ASP.NET version 2.0.50727.
Thank you again from an impressed HTML-hacker in Sweden (The country with Polar Bears on the streets, just about a 1000 miles north of the cheese-making fellows in the country in the Alpes called Switzerland)