More than two years passed... has no one ever found solution to this problem? I am using the latest version of DNN and Windows 7 Ultimate. Facing same issue :((

This issue has resurfaced in DNN 6.0.1 install on GoDaddy.com shared hosting. 

I've had several issues with the DNN 6.0.1 install including the Portals\_default\\Logs\LogFailures.xml.resources error described above....same error message.  The "\\" in the file reference looks suspicious....could be a "..\" issue in a var ref in the code.  This error resulted after an uninstall- clean reinstall using GD's Application Connection service to manage install. 

My previous clean install failed during the Modules selection step of a Custom install that resulted in a "Domain Name Does Not Exist In The Database" error message.  GD tech support suggested trying again and that if it failed a 2nd time to manually install.

Here is an update on the DNN6 (DNN 6.0.2 to be specific) on GoDaddy's shared or web hosting environment.  Over a the past 3 days (GD took awhile), i upgraded this hosting instance from IIS6 - .NET 2.0/3.0/3.5 to IIS7 - .NET 4.0.  In the process, GD also migrated the instance to their new 4GH (4th gen hosting) platform that will improve overall performance as well.  You can see what GD instance type you are running under the Hosting Control Center | Home | Server | OS/Hosting Type:. 
I then initiated DNN 6.0.2 install through GD's Hosting Connections Manage Applications service.  After selecting Typical (last time I selected Custom and enabled ALL of the modules) and going through the defaults for database and accounts setup, the installation now works.  There are several differences between the attempted install earlier this week and today's.  DNN 6 seems to be compatible with .NET 3.5 so I can not point to any specific differences that resolved the install problem, however, if you follow this process, the install should work.  BTW, I'm very jazzed to see that DNN has migrated to C#.  I've coded a great deal of VBScript and some VB .NET, but was never a big fan.  I've been coding with C# .NET on the Ektron CMS platform and look forward to a smoother migration to DNN 6 in C#.  Kudos to the DNN team.