Start the Zope server in debug mode; in Plone's control panel, remove "Unauthorized" from "Ignored exception types" on the "Error log" page. This will help you find the problem.
I remember rumors about earlier Plone versions, that giving a Plone instance the id "plone" could create bizarre problems.
bujanx wrote:
... when I go edit the portlets I receive ...
404 - File or directory not found.
The resource you are looking for might have been removed, had its name changed, or is temporarily unavailable.