I turned off firewall as well, made no difference. For me the problems/symptoms were:yes yes and yes
it tell's you that the installation was successful
its the app that is bugging me and I don't know way , killed the firewall and anti-virus and skype actually I almost killed the whole pc
1. No registry entry: Chevron immediately went to error
2. No cer: Chevron showed screen with 2 check boxes but Unlock caused error
BTW, worst case scenario... you could just break down, spend $99, and register as a developer (then you can unlock their phone to developer mode using the authorized MS tool).
I will probably do that soon anyhow; I do want to play around with writing WP7 apps and I pay MS for all sorts of stuff every year anyways. It was never about the $$ -- it's just that there's just so more satisfaction in installing something that's home brewed. Even if it takes, like, ten times longer, and there's the fear of bricking a phone! Hmm... perhaps that's what makes it all the more exciting?