Installing 4.05 on SBS2003-2  SQL Server 2005

When testing the database connection I get this error:

Connection Error(s):
Index #: 0
Source: .Net SqlClient Data Provider
Class: 20
Number: -1
Message: An error has occurred while establishing a connection to the server. When connecting to SQL Server 2005, this failure may be caused by the fact that under the default settings SQL Server does not allow remote connections. (provider: SQL Network Interfaces, error: 26 - Error Locating Server/Instance Specified)

I changed teh config.web so instead of saying (local) I now say (server1)

    <!-- Connection String for SQL Server 2000/2005
    <add
      name="SiteSqlServer"
      connectionString="Server=(server1);Database=DotNetNuke;uid=;pwd=;"
      providerName="System.Data.SqlClient" />
   -->
  </connectionStrings>
  <appSettings>
    <!-- Connection String for SQL Server 2005 Express - kept for backwards compatability -

legacy modules   -->
    <add key="SiteSqlServer" value="Data Source=.\SQLExpress;Integrated Security=True;User

Instance=True;AttachDBFilename=|DataDirectory|Database.mdf;" />
    <!-- Connection String for SQL Server 2000/2005 - kept for backwards compatability -

legacy modules
    <add key="SiteSqlServer" value="Server=(server1);Database=DotNetNuke;uid=;pwd=;"/>
    -->

Any word on where I am failing to set something correct?

Looks like those strings are still commented out

Actually I had an error in my string that I was made aware of after looking at yours. THanks

But now I seem to have an issue with the SQL server rights

Login failed for user ''. The user is not associated with a trusted SQL Server connection.