As far as I know DNN, DNN does not create database for you, (please correct me if I am wrong), I will suggest you to install DNN in brand new location (directory), create the database, set permission of the DNN Folder, Setup the Connection string, and run DNN install, and you should good to go.
DNN has nothing to do with windows registry. Here is the good article which may help you,
http://www.mitchelsellers.com/blogs...cally.aspx If you need further help, I can Offer my services to install DNN for you through Remote Desktop, Crossloop or using any other software, (FREE OF CHARGE).
Let me know.