Wondering which edition of SQL 2008 is suitable to work with DotNetNuke for my company's website. I notice there's is Web Edition, will that suffice?

Any version should be fine.

I had followed the video tutorial for installation of DNN to the local PC with Win XP Home edition. The MVW has reported successful DNN site installation . The next address has been assigned by the system is "http://localhost:3695/DNN_5_2_Test2...fault.aspx". The site started to work, but after some minutes it has fallen down and I can not reconnect it by any http address. The message is: "The webpage at http://www.localhost/ might be temporarily down or it may have moved permanently to a new web address".

Did you make any changes after which the site quit working?

No, I did not. I've repeat DNN installation treetimes, and the results are same: after the short time the sites are down.

The site is installed at http://localhost ...

Your message says that the site at http://www.localhost ... might be down.

http://localhost and http://www.localhost are NOT the same address.  "localhost" is an alias for a web server on your local computer.  "www.localhost" is not and is not defined.  Try browsing to the localhost address without the www and see if that works.

Thank you for the remark. Unfortunatelly the replay is same "The webpage at http://localhost/ might be temporarily down or it may have moved permanently to a new web address".
I had tried three times. During the installation the system define the next addresses: http://localhost:3032/DNN5_2_Test/Default.aspx; http://localhost:3695/DNN_5_2_Test2...ault.aspx. All of them works for the short time (gave me chance to change the admin password sometimes, but not more).
I tried the IE8 and Google Chrome browsers, I had switched off the Norton 360 Premier ,but nothing works.

What is the story with the port numbers?  Are you actually running this in Visual Web Developer and not as an IIS website?  If so, then you'll need to restart VWD.

I guess I need some additional details regarding how you are installing and running DotNetNuke.

I'm running it in Microsoft Visual Studio 2008. The IIS is not installed on the Win XP Home additon. Detailed information on VS is below:
Version 9.0.30729.1 SP
Microsoft .NET Framework
Version 3.5 SP1
Installed Edition: WD Express
Microsoft Silverlight Projects 2008 91911-152-0000077-60631
Microsoft Silverlight Projects 2008
Version 9.0.30730.126
Microsoft Visual Web Developer 2008 91911-152-0000077-60631
Microsoft Visual Web Developer 2008

Hello Joseph,
After restarting the server, I've repeated the site building and installation process again. The results are same.
1. The building process is successful.
2. The installation process is successful.
3. The assigner adress is: http://localhost:1061/DNNtest6/Default.aspx
4. The result of connection to the http://localhost/" target="_blank" rel="nofollow">http://localhost/ is "This webpage is not available.The webpage at http://localhost/" target="_blank" rel="nofollow">http://localhost/ might be temporarily down or it may have moved permanently to a new web address."
5. The result of connection to the http://localhost:1061/DNNtest6/Default.aspx is "Oops! This link appears to be broken."

I would be happy to provide the logs of the building and installation processes if you give me the appropriate mail address.

Thank you for support,
Alexander

Since you are running inside of VWD, you should be aware (if you aren't already) that the port number gets reassigned everytime you restart the internal webserver.  So, if you are getting this error after refreshing an existing page, you could be using the wrong URL.  Right click on the system tray icon for the webserver to identify the URL to use.

What do you mean by #2, installation?  Are you doing a complete reinstall after every build?

Yes, for every try I :
1. Create a new subfolder, like С://DNN/Test6
2. Unzip the Comunity edition to the subfolder.
3. Build site with VWD.
4. Complete installation throw the IE8.

Above mentioned way is recommended in the video tutorial "Installation DNN 4.5 on the Windows XP home edition". Everything works OK at start, but site became lost every time.

You shouldn't have to do the reinstall every time.  But, I'm not understanding what is going wrong for you.

Could the intsllation logs help in the problem solving?

You could attach the log to a post, and I'll take a look.  Since the installation seems to be sucessful, I don't think that will help, but let's try it.

Thank you, the reports in the attachment.

Yes.  There's nothing there that looks wrong.

What happens if you stop VWD and simple rebuild?  Do you get the site, or do you get returned to the Install Wizard?