In some cases, I have seen people trying to create a database server using an ordinary desktop computer. Doing so people have come across problem where application was unable to connect to the desktop where database is hosted.
Now the simple solution to such problem is:
1. All Programs > Microsoft SQL Server 2005 > Configuration Tools > SQL Server Surface Area Configuration
2. Surface Area Configuration for Services and Connections
3. Under Database Engine select Remote Connections. Enable Local and remote connections and under that enable Using both TCP/IP and named pipes
4. Now restart all SQL Services
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