First of all I am new to DNN so bare with me.  I have searched and searched for a solution to the issue I am having.  Anyway, I am getting the following error when trying to install version 4.4.0 with MS SAL Server 2000. 

Error Installing DotNetNuke

Current Assembly Version: 04.04.00

ERROR: Could not connect to database specified in connectionString for SqlDataProvider

I have followed the installation instructions to a T.  This is being installed on W2k3 Standard Ed. SP1 with all updates and the latest version of ASP.NET 2.0.  Both servers are joined to a windows domain and the user account for the database was created in ADUC (Active Directory) with the appropriate permissions in SQL. 

The only thing I am questioning is all the instructions I see talk about setting up the site as a virtual directory.  Does it matter?  Is there another way to configure if doing this way?

Any help would be greatly appreciated.

Sorry.  read below:

<connectionStrings>
    <add name="SiteSqlServer" connectionString="Server=dbsvr;Database=DotNetNuke;uid=dnnuser;pwd=****;"
      providerName="System.Data.SqlClient" />
  </connectionStrings>

The DB user has the following permissions:
Public
db_owner
db_securityadmin
db_ddladmin
db_datareader
db_datawriter

are you talking about this?

<appSettings>
    <add key="SiteSqlServer" value="Server=dbsvr;Database=DotNetNuke;uid=dnnuser;pwd=****;" />
    <add key="InstallTemplate" value="DotNetNuke.install.config" />
    <add key="AutoUpgrade" value="true" />
    <add key="InstallMemberRole" value="true" />
    <add key="ShowMissingKeys" value="false" />
    <add key="EnableWebFarmSupport" value="false" />
    <add key="EnableCachePersistence" value="false" />
    <add key="HostHeader" />
    <add key="RemoveAngleBrackets" value="false" />
    <add key="PersistentCookieTimeout" value="0" />
  </appSettings>