Hi, I'm trying to install DNN 4.0.2 and keep recieving the following error

ERROR: Could not connect to database specified in connectionString for SqlDataProviderSystem.Data.SqlClient.SqlException: 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)

The funny thing is I can get version 3.2.0 connected to a database in the same location with the same settings & have no problems. So I don't think it's a problem with remote connections because I shouldn't be able to connect to 3 then either.

My Settings:

- OS: Windows 2000 Server
- DB: SQL 2000
- App: DNN 4.0.2
- App Location: C:\Inetpub\wwwroot\DotNetNuke
- App Folder Permissions: Everyone FULL
- Server Name: webserver
- Database Name: Dotnetnuke
- IIS Virtual Directory: DNN
    - Set to use ASP.Net 2.0.50727

- DB User: sa
- DB Password: XXXXXX
- DB Location: sql01 (another machine on the network)

I also have the db connection specified in the appsettings & connectionStrings....of the web.config file.

If anybody could please help me out here I greatly appreciate it I've been working on this for a long time and am out of ideas.