I have Sharepoint farm with two web front-ends. I install FIM Service, FIM Portal, and FIM Password Reset Portal on first node. Once, I have done that, I tried to install three 3 FIM components (FIM Service, FIM Portal and FIM password Reset Portal) second node. I received an error message like below: FIM web site http://...../IdentityManagement or FIM Solution already exits, please go to Sharepoint Central Administration site to clean them up then click " Rentry" or Click " Cancel to abort setup. My question: On second node, do I just install FIM Service only? if yes, will second node be able to function like first node. Also I did setup NLB ( hardware not Windows) Please advise.

Correct, on all subsequent nodes you only install the FIM Service. You don't install the portal as it's deployed to the farm. If you're installing the FIM Service on the farm nodes then all nodes should act in the same way. Load balancing is a valid and supported setup. It's often easier to use A records in DNS than CNAMEs if you're new to Kerberos mind you.