I've installed CentOS7 but when I run it it asks for localhost login. I only created a root user but that does not work. What is wrong or what is the correction I need to make?

I assume that you did not install a desktop and what you see is the command line login prompt with localhost being the host name. Typically people get confused since the password is not echoed i.e. you do not see any ***. The password is typed in the blind.

If you did install a desktop then more information is required. The next assumption is you need to configure the x server and maybe need to install the correct driver for your graphics adapter.

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Not sure desktop is relevant here?? I installed CentOS7 onto a pen drive via the downloaded ISO and Live off the resulting DVD. This was done using a laptop as opposed to my desktop system if that is somehow relevant.
It is asking "Localhost Login:" and when I delay too long it asks for a password.
There was no indication of desktop vs server vs laptop "observed" in the install sequence.
Did not see any queries regarding x-server or desktop.
The install sequence was quite logical and direct. Hate to think this needs a re-install because the install takes well over 2 hrs (longest I've ever observed for an OS).

I re-installed CentOS. All went well. The Localhost Login accepted root/password giving me a root prompt. I expected the graphic screen but only have a text screen.
I su-ed to a user and back which worked. The root directory has anaconda.cfg as the only file.
Can someone explain what is going on and how to get the graphic screen?

I assume you used the min iso which is command line only.

See this link
http://unix.stackexchange.com/questi...ts-on-centos-7

@michaelk: from the reference you gave I am presuming to have installed "a" desktop (presuming Gnome as it is the default). BUT the install did NOT look like that reference but essentially it followed it.
A) I entered my username (which is the admin) and waited for over 2 minutes to get a password prompt. It did accept it.
At that point I am in a terminal of some sort.
I used the reference and entered:
echo "exec gnome-session" >> ~/.xinitrc
which it took and gave another prompt to which I entered:
startx
It barfed at that claiming no such command/directory.

I presume there is some setting to always start with a graphic mode.

I was unsuccessful in getting further. I can do CLI but it is so slow as to be unusable for future efforts if this is what CentOS normally does.

Sorry I earlier presumed UR reference to desktop was something other than GNOME or KDE or ... and more like a desktop computer.

Did you actually install Gnome i.e
yum -y groups install "GNOME Desktop"

Without knowing your computer hardware specifications I can not say why it is slow.

No. Used my Live CD to install from using the graphics rather than CLI.
The laptop is a Toshiba C55-A5126 with 2.4GHz dual core processor.
Bringing up Fedora which was also installed on a flash drive happens like yesterday by comparison. Really don't want to re-install cuz it takes about 5 hours.
It seems weird cuz yesterday I accidently entered the password for both the name and password and it recognized the user correctly.
Cannot get it to bring up the Gnome desktop.
The localhost jazz/confusion was cuz I am not used to seeing localhost used in lieu of the computername or just Login:
====================
Tried to reinstall this distro but to my surprise when I went to boot off the Live CD, I get a message wanting the kernel installed. The DVD was NOT scratched or damaged so as much as I wanted to use this distro it seems there must be better products.
Very saddened, suggest Fedora or maybe Ubuntu if U want an EFI/Secure boot flash drive.

Well have u made a regular user? enter in the regular user stuff to login. Didn't make one? Well reinstall it and make one during the setup.