Yes, i have seen that page but it didn't help me. It assumes that i have file "/telerik/Sitefinity3.x/ProjectManager/Web.Config" - which i don't. There is a folder "\telerik\Sitefinity3.7 Community\ProjectManager\" created and filled during installation, but once it encounters the "could not create virtual directory" error it rolls everything back and these files go away. I don't seem to have any "Sitefinity Project Manager" tools.
I might have confused what credentials i'm talking about in my previous message. I have downloaded the "BlankProject" files and set them up on a new website. i have the "under construction" on http://localhost and the sitefinity login panel on http://localhost/sitefinity . This last panel is the one that is confusing me with how do i get into it.