One thing ... in SQLDeveloper edition you can create more than one instance of
SQLServer .... I called my second one local\NetSDK .... then I don't have to
install msde from VS set up and the config is under my control. Then run the
.NET db files, it looks for the local\NetSDK instance
(FrameworkSDK\Samples\Setup\ConfigSamples.exe).
And I don't have a floating msde installation and/or folders around the place
when I don't really know what or where it is.

All I can say to this is it "probably" does exactly what I did, and just makes
another installation but using minimum files  and no enterprisemanager as it's a
freebie. MS know what their doing and all that - but I have to say I'm happier
making my own local\NetSDK install.

Now you know that as well, you'll probably consider wiping your machine and
starting again and having a perfectly clean and correct set up with zero
installation hitches so you can be that much more confident that when something
does go wrong then it isn't down to the installation of it all.

And do it all again now before you spend 3 days installing the rest of your
software and software settings.

And if you do decide to reinstall the whole cahoot, then test creating a second
instance of SQLserver on your current set up.

Sorry to install  nagging doubts in your mind, but don't blame the install ! What
a mess to start with eh ????
(and save altered samples to cd or another folder && copy && change "QuickStart"
to "QuckStart2" in C:\FrameworkSDK\Samples\Setup\Setup.xml so one original set
of samples and one experimental version - actually that won't work  as the VR's
havent got paths associated with them)

Start again .... I would .... go ooooon.
Wendi lets out a sign and her eyes dim, thinking ... Oh gaawwwwddddd, not all
that palaver again.