Networks

is the version of sql2005 that you are installing 32 bit or 64 bit...if it is 32 bit being installed on a 64 bit os, it will cause all sorts of problems....learned from experience...

Home editions are locked down to usually not allow a true server app to install. If you are installing the Sql Server 2005 Express
http://www.microsoft.com/sqlserver/2005/en/us/express.aspx

Then you may get it to install, but I'm pretty sure a true "server" installtion from microsoft will fail when you try to install it on a Windows "Home" version.

First what does IIS have to do with any of this. unless you are running reporting services IIS will not be required. It should install OK on window 7 providing you have everthing else correct. When you do the install only install the client tools and the database avoid OLAP, reporting services, or integration services, you can add all that later on the install take the defaut instance and if this is going to run on you personal computer have it run under the local system account, take the default correlation. During the install make sure nothing else is running and close everything you can. Sometimes you are required to install services packs after the install I would think with windows 7 this will probably be required for it to start. And last uninstall everything and start over. Note my experience has been with enterprise editions and developer but there all much the same under the hood. Hope this helps and good luck.