I'm having the same problem, receiving a 404 error when trying to login using localhost. Have been using DNN for years. I just installed Windows7 and am using Expression Web 3 and SQLExpress.
I've set my site folder permissions for Network Service to: Modify, Read & Execute, List Folder Contents, Read, Write. Have set permissions for IIS_IUsers to: Read & Execute, List Folder Contents, Read.
In IIS Manager I right clicked Default Web Site, Add Application and created an alias to point to the proper folder on my drive. Checked the permissions and they are as above.
Unzipped DNN Community 5.02.03 Install package to the site folder using Winzip. Previewed default.aspx in Expression Web 3 using Explorer 8. Installation proceeds normally, and get "Success" message. Click go to site and Site comes up and Home page looks just as it should.
When I click "login" to start working on the site. I get the 404 error that the "Resource can't be found" "Requested url: Login.aspx"
I've reinstalled over and over for two days now, and keep getting the same result.
Where have I gone wrong?