But try the documentation and the comments in Web.config first please.
Good Luck! - Corey
 
You need to have IIS installed and configured with ASP.NET 2.0.
You need SQL Server running, either SQL Server itself or the free SQL Server Express.
Here are the steps:
1. Unzip the zip file into a folder.
2. Create an IIS virtual directory and point it to the folder.
3. Edit the file "Web.config", changing the following settings, according to the instructions in that file:
LogFileFolder
UploadFolder
AbsoluteUrlPrefix
4. Create a database. Name it whatever you want.
( If you don't have a tool like SQL Server Management Studio Express to create a database, you can use the BugTracker.NET web pages to create a data. First change the ConnectionString setting in Web.config to point to the "master" database, bring up default.aspx, select the "Setup Database Tables" link, then use the "Create Database" button.)
5. Modify the "ConnectionString" setting in Web.config to point to your database server and newly created database. [Connection string help]
6. Point your browser to your virtual directory and login as user "admin", password "admin". (If default.aspx isn't the default document, point your browser to the "default.aspx" within your virtual directory).
You will be prompted to run the setup.sql script, which creates the database tables, from a web page form, or you could also do it in your favorite db admin tool.
7. Read this warning:
WARNING: If you are planning to use Bugtracker.NET on a public web server, after you install you should:
1. Change the "admin" password.
2. Delete the files "query.aspx" and "install.aspx"
 
At this point you should be able to add bugs by clicking on "add a bug". Please take some time to look at the rest of this documentation. Also, please read the comments in the Web.config to learn what else you can do with BugTracker.NET.
If you want to backup BugTracker.NET data, then backup the following:
1. Your SQL Server database
2. The files you have in the folder you have configured as your "UploadFolder" in Web.config
3. Your configuration and customized files:
a) Web.config
b) btnet_service.exe.config
c) btnet_custom.css, btnet_edit_bug.css, btnet_search.css
 
The hardest part of this procedure for most people is getting the ConnectionString to work.
For help, see these links, the "SqlConnection (.NET)" sections
http://www.connectionstrings.com/?carrier=sqlserver2005
http://www.sqlstrings.com/SQL-Server-connection-strings.htm
http://articles.techrepublic.com.com/5100-3513_11-6084879.html
Another thing you might try to get the connection string right is the following:
1. Create a new blank file and name it test.udl.
2. Double click on it, and a "Data Link Properties" dialog should appear.
3. On "Providers" tab, select "Microsoft OLE DB Provider for SQL Server" or "SQL Native Client"
4. On "Connections" tab, try various settings and use the the "Test Connection" button to test them. Click "Ok" when it works.
5. Open the test.udl file in Notepad and copy the line that starts with "Provider=" into your Web.config "ConnectionString" value, BUT delete the little part that says "Provider=SQLNCLI.1;"
 
If you are having problems with getting the aspx pages (ASP.NET) to work, or if you login and it seems like nothing happens, it could be because your IIS doesn't know about your ASP.NET. Search for "aspnet_regiis.exe" on Google, and follow instructions.
If you can login with Firefox but not with IE, and if you know you are entering in the correct user/password but keep getting redirected back to the login page, then for some reason your IE is not sending cookies to the web server. Newer versions of IE won't send cookies if the host name has characters that are not legal host name characters. Does you host name have, for example, an underscore in it?