I have been with them for many years now. I am literally scratching my head trying to find a new solution. They have an excellent reseller setup, but I can't "resell" if I can't design. No websites means no need for GD.

I wish I'd read this two days ago! I've had some very patronising responses from GD "support" on this issue as I couldn't understand why I couldn't change the permissions at the root folder anymore.  The support guy finally understood what I was trying to do, only by looking at the config on some of the other sites I'd set up.  After going away and investigating, he finally came back to me and said that he'd only just found out about the changes.  He suggested that I should use dedicated hosting instead.  No question that they're going to say goodbye to a percentage of their customer base. Maybe that's what they want.

I'm looking at the work around detailed in the thread and checking out DNN4less, anyone got any other suggestions for hosting providers that allow you to do a root install?

I have been using GoDaddy for years now and I have several Portals on a DNN Website in the Root directory.  My shared hosting is using II6.  Everything seems to work fine.  What problems should I expect if GoDaddy changes my hosting configuration?  Could I not just move DNN from the Root to a Folder?
Thanks,
Greg