DotNetNuke 7 Setup and Installation is pretty much different as compare to previous versions. Following are the steps to setup DNN latest version (7.0.4):-

1. Copy DNN Community Edition files to C:/websites/dnndev.me (dir used by template) set folder security permissions add Network Service with modify rights
2. IIS Manager: ensure Application Pools, DefaultAppPool is running .NET Framework v4.0
3. IIS Manager add website Site name: dnndev.me Application pool: DefaultAppPool (check that .Net4) Host name: www.dnndev.me Physical path: C:/websites/dnndev.me
4. IIS Manager add bindings dnndev.me and dnndev (this is in addition to www.dnndev.me)
5. Web Browser: www.dnndev.me with bring up site install Do use username Host as a SuperUser Account Add user account and give it admin rights (under Admin\User Accounts)

Visual Studio prep for building DNN 7 module XXX

1. Install templates
2. Run VS as admin
3. VS\File\New Project
4. select Templates\Visual Basic\DotNetNuke: DotNetNuke 7 VB.Net DAL2 Compiled Module
        Name: XXX
        Location:  C:\websites\dnndev.me\DesktopModules\
        if available Create new solution
        uncheck Create directory for solution
        uncheck Add to source control
5. Click on "Ok" button to create the template finally.
6. Once the template will be created it will show the documentation. Follow the steps given in the documentation and run the module by attach to process(Dubug->Attach to process).