Thanks for taking the time to help me out with this very frustrating problem.

Here is what I have done...

I uninstalled/reinstalled sql express 2008 and did NOT attach my database with SSMS

I am using the default database in APP_DATA folder

I am using the default settings in the web.config.

My understanding is:

When using the default database APP_DATA\database.mdf --- I do not modify anything within the web.config and I do NOT need to attach the database with using ssms.  

ALSO, because I am using Active Directory provider, I need to uncomment and edit the inpersonation line in web.config adding a domain\username and password

(ie. <identity impersonate="true" userName="domainname\username" password="password"" />)

Is the above true or am I missing something?

I am asking this because when I am using (uncommenting) the <identity impersonate... line I am getting the following error:

 Cannot open user default database. Login failed.
Login failed for user (blah blah blah)

but when I comment out the <indentity impersonate...

I am able to login to my portal with host and admin accounts BUT not my Active Directory accounts.

Please advise,

MickyD