O.K. I've gone back to 3.2xx. Same error.

Connection String in 3.2xx

<add key="SiteSqlServer" value="Server=(local);Database=DotNetNuke;uid=sa;pwd=sa;" />

I have noticed that I get this message regardless .... I have removed the DB just to see what error I would get. I still get the same error if the DB is Enterprise Manager or not. This leads me to believe that something in the DNN configuration is not allowing it to connect to the DB. Now when I was using the "source"  for 4.2xx and connnected to the DB and tested the connection in the Visual Studio IDE. I still got the the "can not connect to the DB". What ever the conditons are, they are consistent between 3.2 and 4.2. During runtime, It seems that the order should be that the tables would be installed in the DB before connection is made. It seems that this order is some how reversed. It is trying to make the connectio before the install starts. It seems that the install should happen and then the connection. I may be wrong in my analysis, but there it is. Just tell me what I need to do to make this happen.