i tested teh app_offline.htm locally and didnt work. I dont see how that works unless you configure iis.  But if you do that then how does your app know to install?

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My mistake. 

app_offline.htm only works with ASP.NET 2.0. To make it work with DotNetNuke or any ASP.NET 1.x application just add this near the top of the default.aspx...

<% Server.Transfer("offline.htm")%>

Note that I purposely used the file offline.htm instead of app_offline.htm because when you eventually change your site to ASP.NET 2.0, using app_offline.htm would actually take your site offline - I know because I have done that to myself many times.

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Dwayne J. Baldwin