Ken,
I read the article and it looks like I match. Let me summarize on the key points and what I am looking at.
I go to the path where dotnetnuke is extracted. c:\dotnetnuke.
I right mouse click on it and select properties and click on the security tab.
I have one user called Network Service. It has modify, read&execute, read, write and list folder contents
I have another user called IUSER. It has read&execute,list folder contents, read. (I am assuming this is the IIS_USRS you are referring to)
I am usinge SQLExpress 2008 from what I can tell from the download. In the configure database connection, I have the SQL Server 2005/2008 SQL (Express) file radio button selected. Left everything default from the instrucitons. In the database name field, it defaulted to Database.mdb and the integrated secuirty box is clicked.
When I hit test connection, I still get the very same thing, I would not think the default install should be that difficult. Totally confused on this one.
Thanks, Mike