I fixed that error didn't have NETWORK SERVICE setup :(. and now get get this one
ExceptionSystem.IO.DirectoryNotFoundException: Could not find a part of the path 'C:\Inetpub\wwwroot\mg\Portals\_default\EventQueue\EventQueue.config'. at System.IO.__Error.WinIOError(Int32 errorCode, String maybeFullPath) at System.IO.FileStream.Init(String path, FileMode mode, FileAccess access, Int32 rights, Boolean useRights, FileShare share, Int32 bufferSize, FileOptions options, SECURITY_ATTRIBUTES secAttrs, String msgPath, Boolean bFromProxy) at System.IO.FileStream..ctor(String path, FileMode mode, FileAccess access, FileShare share, Int32 bufferSize, FileOptions options) at System.IO.StreamWriter.CreateFile(String path, Boolean append) at System.IO.StreamWriter..ctor(String path, Boolean append, Encoding encoding, Int32 bufferSize) at System.IO.StreamWriter..ctor(String path, Boolean append) at System.IO.File.CreateText(String path) at DotNetNuke.Services.EventQueue.Config.EventQueueConfiguration.GetConfig() at DotNetNuke.Services.EventQueue.EventQueueController.GetSubscribers(String eventName) at DotNetNuke.Services.EventQueue.EventQueueController.SendMessage(EventMessage message, String eventName) at DotNetNuke.Modules.Admin.ResourceInstaller.PaDnnInstaller_V3.UpgradeModule(DesktopModuleInfo ModuleInfo) at DotNetNuke.Modules.Admin.ResourceInstaller.PaDnnInstallerBase.RegisterModules(PaFolder Folder, ArrayList Modules, ArrayList Controls) at DotNetNuke.Modules.Admin.ResourceInstaller.PaDnnInstallerBase.Install(PaFolderCollection folders) at DotNetNuke.Modules.Admin.ResourceInstaller.PaInstaller.Install()