Set up DotNetNuke install:

Version 4.3.5 install files are available directly from the DotNetNuke website.

Look for, and download, files with name similar to these:
1.DotNetNuke.4.3.5.
Contains all of the files for a DotNetNuke 4.3.5 website instance
2.DotNetNuke.4.3.5.StarterKit
Contains source code to allow you to develop DotNetNuke modules directly in Visual Studio

Create a directory for your DotNetNuke installation
Create a folder named c:\Inetpub\wwwroot\sample_dnn
Right-click on the new folder and selct properties
Go to the ‘Security’ tab
Make sure that the ‘ASP.NET Machine Account’ has Full Control permissions
Unzip 1.DotNetNuke.4.3.5. into c:\Inetpub\wwwroot\sample_dnn

Point IIS at the DNN folder
Start > Settings > Control Panel > Administrative Tools > Internet Information Services
We can see ‘Default Web Site’.
Right-click on ‘Default Web Site’ and select New > Virtual Directory
Next,
Alias: sample_dnn then Next
Directory: C:\Inetpub\wwwroot\sample_dnn then Next
Select Everything and Next, and Yes
Note: Do NOT deploy a website with these permissions. This insecure state is for use ONLY during development
Right-click on ‘sample_dnn’ and select properties
Select the Directory Security Tab. Click the Edit button in the Anonymous access section.
In the Modal dialog that appears, uncheck Anonymous access, and check Integrated Windows authentication.
Click Ok
Select the ASP.NET Tab.
Make sure the ASP.NET version dropdown is set to 2.x, and not to 1.1x.
Apply and Ok
Create a DotNetNuke database.
Create the Database
Start > Programs > Microsoft SQL Server > Enterprise Manager
Wait for it to set itself up (if necessary) We can see Databases
Right-click Databases, select ‘New Database’
Database Name: ‘sample_dnn’
Click ‘ok’
Create Permissions for the Database
Right-click Logins, select ‘New Login’
General Tab:
Name: sample_dnn_dbo
SQL Server Authentication
Password: sample_dnn_dbo
Default database: sample_dnn
Database Access Tab
Select Permit for Database sample_dnn
Select Public and db_owner for Roles for sample_dnn
OK
Expand Microsoft SQL Servers, and then expand SQL Server Group.
Right-click the local, and then click Properties
In the SQL Server Properties dialog box, click the Security tab, click SQL Server and Windows, and then click OK.
When you are prompted for a password for ‘SA’, check the no password box.
When you are prompted to re-start the SQL Server service, click Yes
The DB is ready

Edit DotNetNuke’s configuration file
Copy c:\Inetpub\wwwroot\sample_dnn\web.config as c:\Inetpub\wwwroot\sample_dnn\web.config.original
Open c:\Inetpub\wwwroot\sample_dnn\web.config in a Text Editor
Locate the section and Replace the entire section with the following:

Locate the section
Use an HTML/XML comment to comment out the entire section. It should look like this:

Locate the line which reads cookieName=".ASPXANONYMOUS"
Change ASPXANONYMOUS to read ASPXANONYMOUSdnn
Locate the line which reads forms name=".FFDOTNETNUKE"
Change FFDOTNETNUKE to read FFDOTNETNUKEdnn
Save web.config.

Open http://localhost/sample_dnn in Internet Explorer, if all has been done correctly, DotNetNuke should process for several minutes. If it has not been done correctly, an error should be displayed almost immediately. Examine the error, and go back and fix it.