I'm getting the same error and would appreciate any
help.

I would check the Add/Remove programs option and the Windows components
section. I don't believe the Admin console  shows FP extensions  on the
IIS server. The installation documentation for SPS2 has instructions on
how it prefers IIS to be setup and mentions specifically to uncheck the
FP extensions option in the IIS setup. Uncheck this option in the
Add/Remove programs option and it will be uninstalled.

I had this problem as well. I had installed  FrontPage 2002 Extensions
when installing IIS (through Add/Remove programs and windows
components), then installed sharepoint  v2, then got this error.

I uninstalled the FP 2002 extension option and retried, but couldn't get
past the error. I spent a good 2hrs on this.

I ended up uninstalling  sharepoint, rebooting, uninstalling IIS,
rebooting, re-running windows  update, rebooting, installing IIS (withOUT
fp 2002 extensions, but with ASP.NET), rebooting, re-running windows
update, rebooting, then installing sharepoint.

Since then, I have been the happiest camper you've ever seen.
Sharepoint V2 is incredible. It is *exactly* what I wanted in
Sharepoint V1. I'm seriously considering running this BETA in
production because so far it's been a lot more stable than my V1
installation. Check this group and the msgroup for how many times I've
complained and begged for some insight into why SPS v1 is so flaky.

i also had done the whole stuff what wayne has gone thru
installed reinstalled sharepoint  3 times , after that it started working
fine without anyporblem
today i am trying to configure the portal site  and check whats in there diff
frm sp v1
i would post what exactly i had gone thru and what things i had changed and
also what things are there in sp v2
thanks all ppl for ur postings

I got the impression that one should not put the portal  on the default  web site.
The readme file specifically said to cancel the first opportunity to create  a
portal, as it would probably not work anyway, and then to go create a new
Virtual Web Server, using the IIS Management Console, and to build your portal
there.

I should say then... that I left out a crucial step in my detail. The
first time, I did try to connect to Default Web site  and the second time
I created a virtual  site called "TManage Internal" and pointed it to a
different wwwroot directory.