I have aquired a new server (test server) VMware Virtual Windows 2003 standard server with IIS and .NET 3.5 and I am trying to get DNN 5.2.3 installed.
Every thing I have tried is returning the same error:
Timed out waiting for a program to execute. The command being executed was "C:\NW2003\Microsoft.NET\Framework\v3.5\vbc.exe" /noconfig

So far I have reinstalled .NET 2 SP2 and .NET 3.5 SP1 and KB958484-x86. 
Tripple checked my permissions.  Both the Web Root directory and Temporary ASP.NET Files directory  =  Network Service (modify), ASP.NET (modify), and IIS all have access
The default app pool is assigned and Network Service is used for authentication.
I copied the DNN install files, and even downloaded them again just incase my local copy was corrupt.
I execute the DNN install from my servers browser using http://xxmachinenamexx
I can verify that all looks well in my Event viewer until I get the message in my local browser.

So does anyone know what might be going on with my server?   I thought there my be a funky security policy but all my permissions look fine.