Hi Joe,
Do you mean that when you connect to the geodatabase in Desktop, you only see dbo.DEFAULT as the transactional version option? You restarted Desktop after re-creating your geodatabase, right? If you create a new spatial database connection, does it still show dbo.DEFAULT only?
And you did say you deleted the database from the SQL Server instance before you re-ran the Post Installation wizard. If you didn't completely get rid of the database and start from scratch, re-running the Post Installation wizard on the existing database wouldn't switch schemas. I seem to recall that when you delete a database in SQL Server, there's an option that asks if you want to restore from backup. Is it possible that was checked and, therefore, it restored a backup that already contained the ArcSDE geodatabase system tables?
When you open the database in Management Studio, if the ArcSDE geodatabase system tables are shown to be in the dbo schema (i.e., they're named things like dbo.sde_layers), either try running the Post Installation wizard and provide a different name for the database, or drop the existing database, be sure it is gone from the SQL Server instance, and run the Post Installation wizard to re-create the database and geodatabase, specifying an sde-schema.
-Kim