OK, I found my error after reading some more appends and renaming web.config to end in .xml so SlickEdit would format the file.  It became obvious that the Express connection stanzas were being used and the MS SQL stanza was commented out.  Once I commented out the Express and uncommented the MS SQL, it installed OK.

Do the problems with permissions ever end with GoDaddy?  Should we just move to another provider?  Some of the modules are working, but when I tried to get the Events module open for the initial config, I get:

Error: Module is currently unavailable.
DotNetNuke.Services.Exceptions.ModuleLoadException: Object reference not set to an instance of an object. ---> System.NullReferenceException: Object reference not set to an instance of an object. at DotNetNuke.Services.Exceptions.Exceptions.ProcessModuleLoadException(PortalModuleBase ctrlModule, Exception exc) at DotNetNuke.Modules.Events.EventController.UpgradeEvents(Int32 ModuleID) at DotNetNuke.Modules.Events.Settings.LoadSettings() at DotNetNuke.Modules.Admin.Modules.ModuleSettingsPage.Page_Load(Object sender, EventArgs e) --- End of inner exception stack trace

This is the first time I have tried to use DNN on a remote server, but I never had any problems like these with the local copies...  I tried deleting the Event module so I could re-install it and the delete is failing with permissions problems.

If we go with a different provider would we have an easier time?  Seems like problems never end with GoDaddy.

I did have all the permissions enabled on the folder I had installed in.  I have given up on goDaddy and have moved to a hosting service that really is set up for DNN support.  I would never recommend goDaddy for anyone using DNN.  but I do appeciate all the help from this group!