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Configuring SQL Server Express 2005 for Remote Access
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Are you getting errors connecting to SQL Server Express 2005 via remote client software and yet have no problem connecting to it on the local machine?

SQL Server 2005 is secure by default... that is you will have to explicitly swithc on features if you need them, for instance remote connections are not allowed by default

Before start playing around with your connection string just check this article, you will need to touch some settings