<add
          name="SqlDataProvider"
          type="DotNetNuke.Data.SqlDataProvider, DotNetNuke.SqlDataProvider"
          connectionStringName="SiteSqlServer"
          upgradeConnectionString=""
          providerPath="~\Providers\DataProviders\SqlDataProvider\"
          objectQualifier=""
          databaseOwner="dbo"/>

I put this commands in one Line, looks like this:

<add name="SqlDataProvider" type="DotNetNuke.Data.SqlDataProvider, DotNetNuke.SqlDataProvider" connectionStringName="SiteSqlServer" upgradeConnectionString="" providerPath="~\Providers\DataProviders\SqlDataProvider" objectQualifier="" databaseOwner="dbo"/>

Be patiant that you ONLY copy the values (in "") from your old web.config!

I know, normaly you can write it in one line. It sounds very stupid but try it.

You have to copy this Values:

<connectionStrings>................</connctionStrings>

<appSettings>.......(2 times of "<add key="SiteSql...")   <-- Very important for you Nir, I think!

<add key="UseInstallWizard" value="false"/>

<machineKey validationKey="..."............... />

<codeSubDirectories> .................</codeSubDirectories>

<add name="SqlDataProvider....(look at the top of this Post there is the String)..../>