We can't tell you the problem because we don't have your setup in-front of us. YOU have to tell us what the problem is and what steps you have taken to try and solve it. This could be an issue of you trying to install on a machine that does not have IIS Setup, it could be that you haven't setup the website inside IIS, you haven't correctly done the setup project. Any number of issues could be the problem.

yes, you are using company provided software to do it. I would suggest looking into a bizspark subscription in order to do this.

Also your AddWithValues are not correct. Basically what you are doing there is sending in SqlDbType.Varchar as the value of your @PhoneNumber and @UserID parameters. This ofcourse will never match anything in your database so the update won't seem to work. You need to remove the SqlDbType.VarChar and replace it with where ever the username and phonenumber are coming from like say a textbox or property of a class (Which is better because it allows for decoupling)

Also, this line (and the one below it)
((Label)(PhoneGrid.Rows[i].FindControl("lblID"))).Text can throw an error if the FindControl can't find lblID because you are calling .Text on it, but what if it's null?

As as been stated to you numerous times, we are not going to write the code for you. I would HIGHLY suggest you stop even attempting the forms app until you have fixed the console app, because you will only serve to confuse yourself even more if you don't.

Now, One thing I see in your console app that you could try to get rid of the main method error is to remove the PRIVATE keyword from main.

Also ByVal and AS String are just keywords. You need to supply a parameter name which is why the method arguments looked like this: ByVal args As String.

It was already suggested to you to remove out everything between the ()'s to make it look like this: main(). You should really do that as well.

Maybe the issue isn't a publish issue at all, but an issue with what is being passed around at runtime. Can you show me the Login page code? It appears that you are doing some kind of substring and one of the parameters you are passing is throwing the exception.