D:\DotShoppingCart\DotShoppingCart\Install>instDSC.exe .\SQLEXPRESS dotshoppingc
art d:\Dotshoppingcart\dba d:\dotshoppingcart\DSC\key realhip.MCMULLIN-LAPTOP\SQ
LEXPRESS
Creating database .\SQLEXPRESS.dotshoppingcart at d:\Dotshoppingcart\dba ...Runn
ing sqlcmd -E -S .\SQLEXPRESS -v DatabaseName="dotshoppingcart" PrimaryFilePhysi
calName="d:\Dotshoppingcart\dba\dotshoppingcart.mdf" PrimaryLogFilePhysicalName=
"d:\Dotshoppingcart\dba\dotshoppingcart_log.ldf" DBDataPath="d:\Dotshoppingcart\
dba" -i "D:\DotShoppingCart\DotShoppingCart\Install\CreateDB.sql" -b
Changed database context to 'master'.
Msg 5118, Level 16, State 1, Server MCMULLIN-LAPTOP\SQLEXPRESS, Line 1
The file "d:\Dotshoppingcart\dba\dotshoppingcart.mdf" is compressed but does not
 reside in a read-only database or filegroup. The file must be decompressed.
Msg 1802, Level 16, State 4, Server MCMULLIN-LAPTOP\SQLEXPRESS, Line 1
CREATE DATABASE failed. Some file names listed could not be created. Check relat
ed errors.

Unhandled Exception: System.ApplicationException: "sqlcmd -E -S .\SQLEXPRESS -v
DatabaseName="dotshoppingcart" PrimaryFilePhysicalName="d:\Dotshoppingcart\dba\d
otshoppingcart.mdf" PrimaryLogFilePhysicalName="d:\Dotshoppingcart\dba\dotshoppi
ngcart_log.ldf" DBDataPath="d:\Dotshoppingcart\dba" -i "D:\DotShoppingCart\DotSh
oppingCart\Install\CreateDB.sql" -b" returned (1)
   at DotShoppingCart.OpenSource.Core.RunCmd.RunProcess(String filename, String
arguments) in D:\sites\OpenSourceEdition\Core\RunCmd.cs:line 52
   at DotShoppingCart.OpenSource.Core.DBDeployment.CreateDSCDatabase(String serv
er, String dbName, String path, Boolean outputToConsole) in D:\sites\OpenSourceE
dition\Core\DBDeployment.cs:line 35
   at InstDSC.InstDSC.CreateDB() in D:\sites\OpenSourceEdition\InstDSC\Program.c
s:line 94
   at InstDSC.InstDSC.Install() in D:\sites\OpenSourceEdition\InstDSC\Program.cs
:line 86
   at InstDSC.InstDSC.Main(String[] args) in D:\sites\OpenSourceEdition\InstDSC\
Program.cs:line 81

You cannot install to the compressed disk. Check this.

thanks it worked.

Now after the installation, how could I run it? I tried following what was shown at the demo to go to http://demo/demo but I got an error: Internet Expplorer cannot display the webpage.

How did you install the web application describied in step 4 of the guide. You just need to browser to that web application url.

under Default website at the IIS manager, there was a demo already in there. I added a virtual directory and pointed it to the web subdirectory. I am confused with this "Use "Integrated" in the managed pipeline mode, since there was no demo at the Application Pools I had to add another Application Pool which is Demo and chose Integrated for the Managed Pipeline Mode.
Am I doing it right? Pls advise

I got that worked out and I was able to bring up http://localhost/demo1/ successfully. But when I clicked login it gives me this error:

<span> 

The resource cannot be found.

Try configuring the app pool to use "Classic .NET App pool".

That works out great, thanks a lot. You were so helpful.