OK - so now we are getting closer to where you are having issues.

Do you understand that by default MS SQL servers are locked down by default and set NOT to support or allow connections via tcpip.  
That means, if you have setup IIS on one server and MS SQL on a second server - they will not be able to connect to each other.

As a result - you will need to enable tcp/ip connections in the ms sql manager - and also make sure that ms sql is set to mix mode authentication - again by default ms sql is often configured to support windows mode integrated authentication only.

Oh and with regard to the router - you may need to make sure that youre mapping your internal and external routing addresses correctly - but at this stage I would get the sql server sorted out first.

Westa

Now I have created the DotNetNuke database, created a new login in SQL Server Mgt Studio for a domain administrator account, set that account's default database to DotNetNuke, and the default language to English. On the User Mapping tab, I checked the Map checkbox next to the DotNetNuke database and below, for the role memberships, there are checks next to db_owner and public .

Next, on the IIS server, I selected the folder that I unzipped the DNN download to and set the NETWORK SERVICE account to Full Control.

OK, so far?

Next I want to create the site in IIS.

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"All the solutions are simple, but only after you already know them" Robt. Pirsig

When attempting to connect from a Win7 workstation, using AnySQL Maestro, per your suggestion, I get the following error:

[DBNETLIB][ConnectionOpen (PreLoginHandshake().]General network error. Check your network documentation.

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"All the solutions are simple, but only after you already know them" Robt. Pirsig