I just bought TNG and followed the Dear Myrtle Webinar as I installed TNG and the plug-in. Some things were already different in the plug-in and what I saw on the webinar. I wasn't sure if I was supposed to install a new tng.php? The wordpress.org install site said not to install a different version, so I didn't.
In any case, I got to the same point where my page didn't display anything (and the admin page within WP didn't either), which in the video you fixed in the background, and said it had to do with Permalinks. I tried changing my permalink settings, but nothing changed. What exactly did you change? Are there other things I can check?