I know I recently posted on a similar issue but I think I just got the the bottom of it (I hope). 

The issue is described in this communication to GoDaddy support:

Dear [email protected],

As discussed with XXXXX  I am writing with details of what I believe to be a bug in the Godaddy/Plesk  software that has caused me ( and possibly others) days to find.

I am installing Umbraco 7.0.0 CMS Software in to the ingridclancy.com web site at Godaddy

When I upload the Umbraco 7.0.0  the web.config in the root of ingridclancy.com it was as attached as TC131202_Orig_Web.config

However when I use GoDaddy Plesk “ASP.NET settings” to change trust level to the Plesk software makes some unintended and unwanted changes.  The modified file is attached as TC131202_Mod_Web.config.

             The unintended/unwanted changes to web.config were:

Removed before <system.data>:   <connectionStrings configSource="config\connectionStrings.config" />

Removed after   <system.web>:    <customErrors mode="RemoteOnly" />

and the following intended/wanted change was also made:

Added before </system.web>:     <trust level="Full" />

It is unacceptable for the Plesk software to be making such unrelated, unintended and unwanted changes to web.config – such changes can take (and did take in my case) several days to track down.

Please look into this and modify the software such that it does not make such changes.

Terry

Hopefully GoDaddy will fix this ASAP. But in the mean time you need to reinsert these lines as follows:

Add before< system.data>:   <connectionStrings configSource="config\connectionStrings.config" />
Add after  < system.web>:    <customErrors mode="RemoteOnly" />

Note that it is the absence of  first line above that causes the Installation Hang Connecting to Database at 5%

Hope this helps.  I plan to post an  summary of all the things to do in order to host to GoDaddy when the dust settles.

Terry Clancy