Check if the user has access to wwwroot and LAYOUTS, right click  the folder
-->properties and security tab and check the users permission.

the user has permissions for this folders.
And i am using Visual studio 2005 .NET framework version 2.0 will that be a
problem.

I want to know what will happen after succcesful portal  creation.what we will
see and what files and folders are created and where.

I had installed  the sharepoint  portal server  2003. i was able to get the
succesful portal  creation but when i click  on the hyperlink  i am not able to get
the default home page.

I was wondering whether i should install Windows sharepoint services
seperately and then install sharepoint portal server. Can anybody help me with
this issue.

WSS is automatically installed  as part of SPS - there is no need (and it can
sometimes cause problems) to install WSS separately.

Have you confirmed that all the DNS, etc work has been done from the
networking point of view? What is the message  you receive when try to go to the
homepage?

when i try to open the home page  i get " The page cannot be displayed" .
what DNS work we have to do.
From Administrative tools-> DNS-> by right clicking on the domain name i
created new Alias. Is it that or should u mean anything else.

No, installing everything when you install Portal works fine. Are you just
getting a 404 error. Make sure and check the logs and event viewer for hints
as to what may be going on.

I am getting "page cannot be displayed" error when i open the portal  home page.

In the event viewer i got this error

The DNS server  could not open socket for address 192.168.2.3.
Verify that this is a valid IP address for the server computer. If it is NOT
valid use the Interfaces dialog under Server Properties in the DNS Manager to
remove it from the list of IP interfaces. Then stop and restart the DNS server.
(If this was the only IP interface on this machine and the DNS server may not
have started as a result of this error. In that case remove the DNS\Parmeters\
ListenAddress value in the services section of the registry and restart.)

If this is a valid IP address for this machine, make sure that no other
application (e.g. another DNS server) is running that would attempt to use the
DNS port.

so what should i do next.