I had the same problem but was able to work around it.

It seems that when installing from a template there is a file called Blog_03.03.01_Install.resources and the template is looking for Blog_03.03.00_Install.resources. Since they are 2 different files an error occurs.

These are the steps i did to fix the problem. Bassically i replaced Blog_03.03.01 with Blog_03.03.00

1. Locate the DotNetNuke.zip template file. In my case
 My documents\Visual Studio 2005\Templates\ProjectTemplates\Visual Web Developer

2. Open it up and go to
DotNetNuke.zip\DotNetNuke\Install\Module

3. Locate
Blog_03.03.01_Install.resources

4. Download the install file from
http://sourceforge.net/project/downloading.php?groupname=dnn&filename=Blog_03.03.00_Install.zip&use_mirror=surfnet

5. Rename the install file from
Blog_03.03.00_Install.zip to Blog_03.03.00_Install.resources

6. Remove Blog_03.03.01_Install.resources from the DotNetNuke.zip file and replace with Blog_03.03.00_Install.resources

That should do it.
Try creating a site again.

Ditto on both problems here.  For the Blog issue, there is a problem in the DotNetNuke.vstemplate file.  I created an updated version that you can get at: DotNetNuke Starter Kit Blog Problem.  As noted above, the starter kit is expecting Blog version 3.3.0 but the distribution contains 3.3.1.  One fairly easy way to update the kit is to do the following:

1. Download and unzip the StarterKit
2. Download and unzip the file DotNetNuke Starter Kit Blog Problem.
3. Take the DotNetNuke.vstemplate file from step 2 and place it in the DotNetNuke.zip file in the starter kit directory.
4. Run the "DotNetNuke.vscontent" file in the starter kit directory.  If you have already installed the starter kit, just let windows replace all the files.

As for the DB scripts, the only way I could get it to work was to use the auto install as noted above.