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I have tried dozens of changes and modifications to many settings as I will outilne here and all to no avail.
The short answer here though is that I uninstalled SQL Sever Express 2008 R2 and went back to the "NON" 2008 R2 and got things working. But like the fool I am wanted to run on the more current rev and updated again, all problems returned....
Win Server 2003 R2 SP2
SQL SERVER EXPRESS 2009 R2
VWD2008 Express (removed)
SQL Server Express 2008
I was orginally getting this message after updating to SQL Sever Express 2008 R2, I removed VWD 2008 Express from the web server, no good, then uninstalled SQL Server 2008 Express R2 and reinstalled SQL Server 2008 Express. worked but had issues, couldn't install MGTM Studio. Then I removed SQL 2008, cleaned folders and reg. Reloaded SQL Server 2008 Express, still flaky, couldn't get the Management Studio to install. So I removed it again and used the Web Platform Installer, which worked but loaded 2008 R2 again. Which brought back the message.
Failed to genera
I just installed SQL Server 2008 Management studio Express on my Vista machine. i tried connecting to local machine using :.\sqlexpress, (local)\sqlexpress, or .\SQLExpress, MyPCNAME\SQLExpressnothing is working, getting this error:-----------------------------Cannot
connect to PC-NAME\SQLEXPRESS. A network-related or instance-specific
error occurred while establishing a connection to SQL Server. The server
was not found or was not accessible. Verify that the instance name is
correct and that SQL Server is configured to allow remote connections.
(provider: SQL Network Interfaces, error: 26 - Error Locating