We have lots of potential clients ask us if we can run Umbraco on GoDaddy.  In the past, we'd shied away from this due to issues we've seen posted on the Umbraco forum.  With the release of Umbraco 4.7.1 it seemed that the issues (mostly medium trust issues) that prevented Umbraco from running on a shared instance of GoDaddy were resolved.  

We decided to give it a try and see if we can get a site up and running on GoDaddy.  It was surprisingly easy.  Here are our quick step by step notes on how to setup Umbraco on a GoDaddy shared Windows hosting with a SQL Server database instance.  (Note that not all Umbraco packages work on medium trust.  Make sure that the Umbraco packages you need will run on medium trust before choosing GoDaddy).

Steps to setup Umbraco on GoDaddy:

1. We're assumming that you've already setup your database (you can find your database host name by clicking Databases > SQL Server from the Hosting Dashboard, then click the Edit/View Details (pencil icon) in Actions next to the Database ) and Windows hosting environment with GoDaddy
    
2. Download the latest binaries from http://umbraco.codeplex.com/ (4.7.1 or higher -- haven't confirmed v5 yet)
   
   
3. Use FTP to transfer the files to GoDaddy (you'll find your server ip address in the hosting dashboard in the GoDaddy Hosting Control Panel)
     
4. Set the permissions on GoDaddy in the File Directory folder (check the folders then select Permissions from the top toolbar - second to last icon, and set permissions to read and write)
    
5. Change the umbracoDbDsn in web.config to your db string (this will prevent any umbraco errors on the install step 3)
    
6. Go to the URL (Preview My Site).  This is usually your domain name including the extension (.com/.org/.net) .previewdns.com. For example, the preview dns for test.com would be test.com.previewdns.com. This should start the Umbraco installation wizard (/install/default.aspx)
    
7. After finishing the wizard (this should be self explanatory) you may continue to be redirected to the install wizard. If this happens, the umbracoConfigurationStatus in the web.config is probably blank. Set this to the Umbraco version installed (i.e. "4.7.1")
    
8. At this point you should have a functional Umbraco installation up and running on GoDaddy.

Hope this helped.  We just wanted to let people know that it is possible and quite easy to setup Umbraco on a GoDaddy shared instance.