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I am using MOSS 2007 and create a portal. Whenever I go to Site Actions -> Create Site and provide information like:

Under the Permissions pane there should be two more panes like Navigation and Navigation Inheritance, but surprisingly I only have Navigation Inheritance. Can you please guide what am I missing and what I am doing wrong and where plus how to rectify it?

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Oddly enough, I have had this happen as a result of the Loopback check. I don't know if this is the case for you, but you can try the actions here: http://support.microsoft.com/kb/896861. If this is a production system, I would definitely use the host names method. The second method is fine if this is a dev machine or something. Let me know if this solves your problem. I'm not sure why it does that, but it definitely corrected the issue for me.

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Lori thanks for your reply. Well I am new to sharepoint and couldn't figure out so I have deleted the "web application" and recreated. But I've noticed one thing that first time when I installed MOSS and configured my first Top-Level Site the template was "Publishing->Collaboration Portal" but when i recreated with "Team Site" the navigation appeared..I dont know whats the difference between Portal site and other sites..can anyone elaborate what caused the problem. – –  Anonymous Jul 1 '10 at 5:36
    
A collaboration portal uses the publishing infrstructure that SharePoint provides. This allows for a richer navigation experience, custom master pages, and many other features that a standard team site does not. Each template you select when creating a new, top level site in a site collection has different characteristics. It may restrict what types of sites you can utilize (such as the publishing portal) or what types of web parts you can use. Since you are new to SharePoint, sharepointoverflow.com/questions/3/… are books 4 you. –  Lori Jul 1 '10 at 13:45
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