I just completed one NopCommerce implementation on GoDaddy and wanted to share it here. Here are the step wise instructions to make a seamless install:

Pre-requisites

Windows hosting account on GoDaddy with asp.net 4.0 enabled. The new Godaddy windows 4G hosting is also good.

Install

There could a direct way of installing NopCommerce on GoDadddy but it threw permission denied errors on creating SQL server database and hence followed path of copying things from my local machine to GoDaddy. This works like a charm if you follow the steps as given.

1. Download and install NopCommerce on your local machine. This helps in setting up the database in your local machine.
2. Now, we need to copy the NopCommerce code files to GoDaddy server. You can use any FTP client to do so. I used the GoDaddy's online FTP client. Also, make sure that you copy the ZIP folder of NopCommerce kit as GoDaddy has unzip tool available in control panel. So, upload would happen quite fast.
   
   Once you have copied the ZIP file. Open file manager(hosting control center->content->FTP File manager) and Select the zip file and click 'UnArchive' button in tool bar. Select the folder where you want to UnArchive this file and say 'OK'. The NopCommerceStore folder files should be unzipped at the root. After unzip your root folder should look like this:
   
3. Your web content files are now copied. We need to copy the database schema now before running the NopCommerce for first time. Go to GoDaddy's hosting control center and create a new database instance. Note that if you have created a SQL server 2005 Db on local machine, then you should select 2005 here or if it is 2008 at local machine, it should be 2008 here.
   
4. Now use Visual Studio's 'Publish to provider' utility to copy the DB schema to GoDaddy's SQL server.
5. Once DB instance is created and copied, we need to specify this DB connection string in connectionstrings.config file. You will find this file in root of your NopCommerceStore (NopCommerceStore/ConnectionsStrings.config). Edit this file to include the connection with the DB that you have just created. The connection string name is important here. It should be NopSqlConnection.
   
   Go to 'Hosting control center'->Databses->SQL server. Click on 'Edit' button to open the configuration for your DB:
   
   You will see the following configuration. You need to copy the SqlConnection string as highlighted here and paste it in your Nopcommerce connection string as shown below:
   
   
   <connectionStrings>
   <add name="NopSqlConnection"
   connectionString="PASTE COPIED CONNECTION STRING HERE" />
   </connectionStrings>
   
   
   It should now look something like this:
   
   <connectionStrings>
   <add name="NopSqlConnection"
   connectionString="Data Source=GODADDY HOST NAME; Initial Catalog=SQL SERVER ID;User ID=YOUR DB USER NAME; Password=YOUR PASSWORD;" />
   </connectionStrings>
   
   
   Now, upload this ConnectionStrings.config file to the root of your website on GoDaddy.
6. Edit folder permissions. Go to 'Hosting control center'->FTP File manager. Give Read and Write permissions to folders 'Images' and 'App_Data'.
7. Run your website from browser and you should be able to see the first page of your just installed website as follows:
   

NOTE: If you run multiple websites using same GoDaddy hosting account, then you should consider the respective folder as ROOT for the above installation.

If you have any questions/problems following the above process, write it in comments and I will try to address the issue ASAP.