SQL 2005 and 2008 are configured by default in a fixed latency state - and this means that SQL will not access the database except through shared memory, even with integrated security.
You need to enable TCP / IP or named pipes for client protocols for the server (since ASP.NET is negotiating with SQL if you have not configured DSN to use shared memory.
I canβt remember the exact steps in 2k8, since I needed to do this once, but in 2k5 you had to open SQL Server configuration manager, select your own client configuration, client protocols and enable TCP / IP and Named Pipes - this is a similar process for 2k8, as I recall.
Zhaph - Ben Duguid
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