You get any of the following errors when connecting to a Microsoft SQL Server database from the Database step in the Application Wizard:
Microsoft OLE DB Provider for SQL Server error '80004005'. [DBNETLIB][ConnectionOpen (Connect()).] SQL Server does not exist or access denied. DBNETLIB error
SQL Server does not exist or access denied
SQL Server is unavailable or does not exist
The specified SQL Server is not found
This error could occur for a variety of reasons described below.
Please check that your Microsoft SQL Server database is actually running.
Iron Speed Designer cannot see your Microsoft SQL Server if your Microsoft SQL Browser service is turned off or not running. This service allows Iron Speed Designer to see your database on the network.
If you are using a local instance of MSDE 2000 or Microsoft SQL Server Express Edition, check the Services under Administrative Tools to ensure that SQL Browser service is running.
Check that Microsoft SQL Server Client Network Utility is running on your local development machine.
Your local or router firewall is blocking UDP Port 1434 (or port 1433 if using Named Pipes) used to locate Microsoft SQL Servers on your network.
http://support.microsoft.com/default.aspx?kbid=328306
http://support.microsoft.com/kb/315159/en-us
Part IX: Troubleshooting Applications
Application Generation and Compilation Error Messages