I setup everything in IIS and all proper folder permissions.

In SQL Server Management Studio 2012
I created a new database called DotNetNuke.
I created a login called DotNetNuke w/ a password.
I mapped this login as db_owner of DotNetNuke.

I browse to my website at "test.DotNetNuke.me".
I fill out the entire form.

Database Information:
I do not want DotNetNuke creating this database file for me in my websites App_Data directory so I choose the following:

Database Setup: Custom
Database Type: SQL Express
Server Name: .\SQLExpress
Filename: DotNetNuke.mdf
Object Qualifier: Leave blank unless needed
Security: User Defined
Database Username: DotNetNuke
Database Password: MYPASSWORD
Run Database As: Database Owner

I am assuming my issue is the Server Name so I have tried so many different values in this field:

.
.\SQLExpress
localhost\SQLExpress
HunterT-PC\SQLExpress
.\MSSQL11.SQLEXPRESS
(I even tried everything with forward slashes "/")
and
Logged in to all of the above as "sa" to make sure it wasn't a permission problem.

I checked where my SQL Server Express directory is and it is located at the following since I have Windows 7 64-bit:
C:\Program Files\Microsoft SQL Server\MSSQL11.SQLEXPRESS

Below are the continuous errors that I keep getting:

ERROR:Index #: 0
Source: .Net SqlClient Data Provider
Class: 14
Number: 15364
Message:

ERROR:Index #: 0
Source: .Net SqlClient Data Provider
Class: 20
Number: 2
Message:

Also, Verifying Database Connection will go in a continuous loop if I specify a server name that it is unfamiliar with.

I remember back in the day when I was installing DotNetNuke it was some random thing that I put in the Server Name field to get it working. I just can't remember what I did and it's killing me. I already tried using Default database mode and it created a file with no problem. Although, I'd prefer to setup my database manually and use the Custom connection.

Does anyone have any other ideas for what I would put in the Server Name field?

Thanks so much, worked like a charm. I don't understand why the SQLExpress selection is even there.