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My problem is the following(sharepoint Newbie) , i want to change the default zone from being a Windows Authenticated Zone to a Forms Authenticated Zone ,thereby forcing the site collection administrator to log in via forms authentication and not windows also the sharepoint users will be accesing the site internally my goal is to effectively replace windows authentication with forms authentication as my company does not have active directory installed.

So far i have created an ASP Application that adds the users to the database,the database was created via the .Net Framework Asp tool(Asp reg_sql),however when i change the default zone to the AspNetSqlMembershipProvider(Forms) and attempt to add my site collection administrator via the Central admistrator, i get the following error "No Exact Match found" as shown on the screenshot. My inkling is that somehow the people picker is failing to read the users from the database but reasearch on correcting that thus far has proved fruitless. I have made all the relevant changes on the these sites(Central admin site,My test site & Add Users site) config files.Changes are the following(Membeship Provider,Connection String,People Picker) i left out the role provider for now as it is optional.

Help on this would ge highly appreciated...

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    @sbee: does the user specified in the application pool(s) for your sharepoint site(s) have access to your database? – MattB Mar 15 '10 at 14:38

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Sounds like your question could be programming related, rather then server admin related but here are some other tips:

It's best practice to leave the default zone as the default NTLM auth. SharePoint 2007 has lots of actions that run as the services accounts and they won't work under custom forms auth. Search is one.

The correct way to do this is leave the default site at servername:80 and "extend" the existing web app to a new one, which is just a new URL and auth type of the first that runs on something like https://sharepoint:443

That way you are protecting their forms-based passwords with SSL, you keep all the services working well on the default URL, and you can mess with forms-auth on the new URL while still having admin access via the default URL. Best of both worlds.

Process is described here: http://msdn.microsoft.com/en-us/library/bb975136(v=office.12).aspx

Bret Fisher
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Make sure that you added connection string and membership provider to web.config of sharepoint website and central administration. Also make sure that you type the whole name on Add users.