I am trying to set up an existing DNN project on my local machine using IIS. I’ve downloaded and restored a copy of the live database, then downloaded website files from the FTP and placed them into a virtual directory on my machine.
At this point, when I navigate to the homepage, I am presented with the DotNetNuke installation wizard. When I proceed with the wizard, it starts performing DB updates and fails on the version 05.03.00. Here is the screenshot of the output:

The only log that I can find is the EventLog table on the database, but it doesn’t contain any useful information about the error.
The interesting thing is that the website runs fine on the production server, so the DNN file version should be the same as the database version, therefore there should be no need for DB updates.
I’ve installed the DNN community edition v06.02.00 (together with MS WebMatrix) last week, but removed it prior to setting up this project. I’m thinking it could have something to do with this issue. If anyone has experienced these kind of problems, maybe you can point me in the right direction here?
Based on what you have mentioned I would guess that you need to update your ConnectionString in the web.config to point to the proper database. (The one you restored).