I think I may have located the cause of the problem. I made the mistake of dropping the starter kit into a new website I had created, but the thing I overlook was that I usually work in C#. So the site language is flagged as thus; DNN on the other hand is made for
VB, not C#. So when you build it/publish it the site just won't work correctly.
After creating a new site, this time with it's language set to VB instead, the DNN template showed up correctly in the templates selection. Creating a site with it also correctly displayed the welcome page.
Now after changing the web.config sql connection string information to be accurate and deploying the whole shebang to my web server, it successfully ran right through the install process and opened up onto what appears to be the default portal page (an empty block with date, register/login, search, and a short footer).
So,
night_day, I think you may have compiled the site in the wrong language. Try recreating it again, making sure when you do that you have
Visual Basic flagged as your site language. You should have more success once you have.