Here is my XML for the dnn file. Perhaps something is incorrect or an element missing here. I've compared this to the file that Timo has on his site, see nothing that jumps out at me. As DNN gives a success on this, not likely it is that an error is here, but here's the XML. This would be a logical place to look if install goes just fine but yet the system can't do anything with the object.
As a note, in the .vb file, there is a line for "MyFileName", as this: MyFileName = "Privacy.ascx" and this was updated to "TMPPrivacy.ascx" so that base is covered. In case this might have been the mistake, I did edit the name back to the original and rebuild the site. No joy.
<dotnetnuke type="Package" version="5.0">
<packages><package name="TMPPrivacy" type="SkinObject" version="1.00.00">
<friendlyName>TMPPrivacy</friendlyName>
<description>
This is a copy of the DNN Skin Object for Privacy and Terms. It is created
so that this one can have a different text color for dark backgrounds, leaving
the original for lighter backgrounds.
</description>
<owner>
<name>Mike Durthaler</name>
<organization></organization>
<url></url>
<email></email>
</owner>
<license>
Permission is hereby granted, free of charge, to any person obtaining a copy of this software
and associated documentation files (the "Software"), to deal in the Software without restriction,
including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense,
and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so,
subject to the following conditions:
The above copyright notice and this permission notice shall be included in all copies or
substantial portions of the Software.
THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED,
INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM,
DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM,
OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.
</license>
<releaseNotes>
Nothing special for the release, this is just a copy of the DNN Privacy skin object for use
on dark backgrounds.
</releaseNotes>
<components>
<component type="SkinObject">
<moduleControl>
<controlKey>TMPPrivacy</controlKey>
<controlSrc>DesktopModules/TMPPrivacy/TMPPrivacy.ascx</controlSrc>
<supportsPartialRendering>False</supportsPartialRendering>
</moduleControl>
</component>
<component type="File">
<files>
<basePath>DesktopModules\TMPPrivacy</basePath>
<file>
<name>TMPPrivacy.ascx</name>
</file>
<file>
<name>TMPPrivacy.ascx.vb</name>
</file>
</files>
</component>
</components>
</package></packages>
</dotnetnuke>