Ok so I am having some real trouble with installing VM2 using the Joomla extension manager.
Yes I have unziped the extract first file and removed the two zip folders
next I selected the VM2 2.0.0 folder to upload first and when I do this I get return message saying 500 error (internal Server error) I have truly tried everything possible to install and every way I try results in the same error being returned. I have already contacted Godaddy support and made sure there is nothing wrong with my hosting plans and I have even gone so far as to make all folders have teh same permissions of read and write. I have even taken it a step further and uninstalled Joomla after backing up the site and installed a fresh copy of joomla 1.7.3 with no mods or extra gizmos and I still get the same message. Please help!!
BTW I used this tutorial to install http://www.itjungles.com/joomla-tips/how-to-install-virtuemart-2-0-for-joomla#josc1457
http://forum.virtuemart.net/index.php?topic=96035.msg315704#msg315704 ???
Have you checked the error log on your site for the cause of the 500? Surely nogodaddy does allow access to logs...
You could try uploading the first VM component zip to Joomla tmp for installation - see http://forum.virtuemart.net/index.php?topic=91769.msg301550#msg301550