While pondering what you might have suggested I did the following:
Copied the dnn installation from the 2003 server to the 2008 R2 server. Ran over to watch the DNN installation video and did the followitng with that:
Did the add application thing and pointed to the location of inetpub\wwwroot\goof
Set the Application Pool to DefaultAppPool and set the profile thing to true.
Set the permissions for IIS AppPool\DefaultAppPool to Full control for the installation path of c:\inetpub\wwwroot\goof (well goof isn't the actuall name, but hey...)
Loaded the web browser and headed over to
http://localhost/goof
The system reported there was an apparent duplication in one of the keys in the web.config file so I found a post that talked about that and added the following line to the web.config file
http://localhost/goof now does the following at the moment -
This site is currently Unavailable
Please check back later
Checked Event Log to see if it had any hints but no such luck.
Just for the heck of it also removed all the protocols from the Bindings. Well except for the http protocol. Told you I was new to IIS 7.x. :)
If I go to the application pool and under Process Model I click the ... next to Identity it is set to ApplicationPoolIdentity
I go to Edit Site and below the Pass-Through authentication I click Test Settings and for Authorization I get a Yellow Warning - Cannot verify access to path.
arrrrgh.