hmm, ok I see. I assumed you'd simply set up a duplicate site on the hosting account and then you'd know exactly how to set it up seeing as you set the first one up there as well. I'm hosted at Webhost4life and it's very simple to duplicate a DNN site, but I also know from reading posts about godaddy that that may not be so straigthforward to do it there... so is that possibly why you're copying it locally instead?
Even so, it shuodn't be too hard ti download and get it running locally so long as you know how to do that in the first place. I would suggest troubleshooti this by setting up a blank fresh DNN portal first, just to confirm that you can do it and everything that is needed is present.
If you can get a new DNN portal working, then it'll be clear how to make the duplicate work as well. Have you got the same database running? I don't know if SQL2005 and SQL2005 Express db's are interchangable.. perhaps someone else can fill us in on that.
Also.. if you can get into Admin, Event Viewer, you can probably find a lot more information about those errors. Even so, I wouldn't beat a dead horse... it should simply fire up and work without any dramas.
I would also do a search for posts about Godaddy... there are always issues with hosting there, but I have to admit that I haven't followed any of the threads.