I had the same issues you had. I totally gave up on GoDaddy. They have too many restrictions and not enough flexibility, One, you can't run aspnet_regsql.exe against the database on their server which configures the starter kit database to ASP.NET tables and procedures. Two, won't let you do a remote connect to your databes using your SQL Server Manager and other stuff that are necessary for the ASP.NET administration piece to work.
I switched to webhost4life.com and I'm up and running. You can remotely connect to your database and run all the scripts you want. You can also run aspnet_regsql.exe against your remote database following a string of commands. I can now manage my website remotely, that is a user with admin access can upload pictures remotely.