Hi Wayne,
I have hit similar issues as yourself, however with comments and advise from DNN members here and on other forums i have finally mangaed to get my local development environment exacltly as i want it. I am using Vista Home Premium SP1, SQLServer2008 Express and IIS7.0
This has been quite involved, but it's easy when you know how ! Also i'll try an keep this post to a minimum.
OK, I am going to Add a new website to IIS7.0 and document the steps as i do it:
1) Goto inetmgr and right click "Sites" then "Add Web Site" in this Dialog enter the following values:
Site Name: DotNetNuke_2 (for example)
Application Pool: Classic .Net App Pool
Physical Path: C:\DotNetNuke_2
Type: http IP Address: All Unassigned Port: 80
Hostname: DotNetNuke_2
Then click [ OK ]
HOSTS FILE
Add a new entry to your hosts file which is located in this directory: C:\Windows\System32\drivers\etc
Note: Ensure you edit this file as an Administrator. There are other posts out there that detail placing a shortcut on your desktop to this file and changing the properties of the shortcut so it runs as an admin when you open it, it just makes it easier to get to each time you want to edit it) [ Shortcut Properties >> Advanced >> Tick the run as admin checkbox ] ... i digress. Anyway, enter this line in the hosts file.
127.0.0.1 dotnetnuke_2
Now save hosts and view the home page - *** Job Done ***
OTHER COMMENTS (You probably already know all this, I am just trying to cover all the possibilites)
Also, ensure all the Permissions are set properly. example, i have added NETWORK SERVICE and MyComputerName\IIS_IUSRS and given these users "modify" permissions. (sorry i can not clarify whether you need both users or not, but i suspect network service is the required user in question.
Ensure you can run ASP.Net on your local IIS7.0 AND check that Default.aspx is at the top of the "Default Document" list (found in inetmgr); and that "forms Autentication" is enabled in "Authenication".
BTW, i read somewhere that having an instance of DNN on the default website causes issues with additional websites that are added to IIS. I have left the default IIS7.0 Homepage in place. I am not sure how accurate this comment was.
There could be numerous other reasons why you can not get your environment set up how you want it. If this doesn't help, then reply to this post with the issues and i shall see if i can comment and assist you further.
FYI: "Re: Installing DotNetNuke Source on Vista using IIS7"