So, I installed Biztalk 2010 on Win2008 server with SQL server 2008 R2 on a 32 bit machine. Biztalk configuration worked smoothly as one would expect it to until the wizard tried to enable BAM portal. Biztalk configuration wizard threw an error saying "Default Web Site can't be validated". I did some research and found that almost everyone that had this error got it fixed by installing "IIS6 compatibility" role on the Server. But in my case, this role was already installed. But just to be sure, I uninstalled it--> restarted the server and installed it back. Only to find that it did not make any difference!
I tried hacking my way by physically creating BAM application on the IIS but did not work either. Since BAM is a pre-compiled version, I could not debug it as I would do in an asp.net web application. Then, I thought of creating a new website called "BAM" at the same level as the "Default Website" but on a different port (not 80). In my case, I used port 81. I ran the Biztalk Configuration wizard, pointed it to "BAM" site instead of "Default WebSite" and it worked!!
Later, I did some research and found out that this is a "bug" or a "known behavior" with Biztalk 2010 installation. It seems creating a new site for BAM is generally accepted solution.
Check out :http://social.msdn.microsoft.com/Forums/en/biztalkgeneral/thread/ef650460-c219-4b34-bc7a-41bb7e75ec81
I would like to hear from others who faced/or not faced same issue.