It runs fine

Says complete...

Than I click on the access portal link and it just hangs.....
I've tried modifying the web.config file.... I've tried recycling the app pool....
When I restore the old 4.08.04 version of the database... It starts responding again and runs the install program w/o a problem.

But than just hangs again :(

One possible cause, are you using any 3rd party modules? You can remove DLL's from the bin folder that look like module's you've added, do this one by one to see which module is causing the hang. Find an update or support.

I'm experiencing the same thing. No previous problems with version v04.08.04 installation and operation.  It appears to try to load and reload Default.aspx\tabid=26.

Configuration:
     XP Pro 64bit (AMD+6400, 8gig/800 DDR2, 1 Terabyte raid 5 disk array)
     New install DNN-Install v04.09.00
     No firewalls - Secure closed network
     No anti-virus - Secure closed network
     No 3rd party modules - Can't get behond the install
    

Just sets on this screen after I press the button "Finished (Goto Site)":
     Congratulations
     Congratulations, you have successfully installed DotNetNuke.

IIS Logfile W3SVC1:
     This file is getting large very quickly with a repeating log entry. "XXXXXXXX" used to hide true location in this message only.

2008-10-12 22:44:43 W3SVC1 127.0.0.1 GET /XXXXXXXX.com/Default.aspx tabid=36 80 - 127.0.0.1 Mozilla/4.0+(compatible;+MSIE+7.0;+Windows+NT+5.2;+WOW64;+.NET+CLR+1.1.4322;+.NET+CLR+2.0.50727;+.NET+CLR+3.0.04506.30;+.NET+CLR+3.0.04506.648;+.NET+CLR+3.5.21022) 302 0 0
2008-10-12 22:44:43 W3SVC1 127.0.0.1 GET /XXXXXXXX.com/Default.aspx tabid=36 80 - 127.0.0.1 Mozilla/4.0+(compatible;+MSIE+7.0;+Windows+NT+5.2;+WOW64;+.NET+CLR+1.1.4322;+.NET+CLR+2.0.50727;+.NET+CLR+3.0.04506.30;+.NET+CLR+3.0.04506.648;+.NET+CLR+3.5.21022) 302 0 0