How did you install SMF? Manually or from the godaddy application choices?
I installed from the godaddy application choices. It created the database etc.
I then, upgraded via the 2.0 full download upgrade package and uploaded that via FileZilla to the root (or wherever you have your forum installed)
I ran the upgrade.php upgrading me from 1.X to 2.0 RC1.2
If nothing else works, try the above, I see no reason why it shouldn't work. It works for me. I do get an odd 500 every now and then, but nothing that doesn't go away.
Hope this helps. If you backup your database, you've got nothing to loose but time.