Thanks for your assistance guys!

I have edited web.config. here is my current config. cut and paste.

Still have the same problem -

 

<connectionStrings>

<!-- Connection String for SQL Server 2005 Express -->

<add name="SiteSqlServer" connectionString="Data Source=.\SQLExpress;Initial Catalog=DotNetNuke;Integrated Security=True;Database=DotNetNuke;" providerName="System.Data.SqlClient" />

</connectionStrings>

<appSettings>

<!-- Connection String for SQL Server 2005 Express - kept for backwards compatability - legacy modules -->

<add key="SiteSqlServer" value="Data Source=.\SQLEXPRESS;Initial Catalog=DotNetNuke;Integrated Security=True;"/>

<add key="InstallTemplate" value="DotNetNuke.install.config" />

 

I don't have a clue where to go from here.

Not sure what you mean by what the data base is called. I just opened sql server management express and added a new database called DotNetNuke.   asssigned sa as the owner,  added the db_owner schema and role to dbo in the DotNetNuke database security, users section.

How do include the password and uid in the connection string?

Assuming you are using the DefaultApp pool and Default Identity (NETWORK SERVICE), NETWORK SERVICE, aka NT AUTHORITY\NETWORK SERVICE needs access to your DotNetNuke database. 

Or, using the user that you created, if you created that as a local windows account, use that identity in your application pool and give it access to your DotNetNuke database.  In this case, the application pool identity will use that user's rights to access the web site and web site database.

You can also try using SQL Authentication as mentioned in the previous posts.  Still, in that case, the application pool identity will still need access to the virtual directory and folders.  It looks like you're already past that step and/or issue.