I'm going to have to start by saying that I'm not really sharp in SQL. However it appears that your connection string does not match up with the ones provided in the DNN web.config file. It's kind of similar to the SQLExpress string but modified.

As we talked about in another thread, I always use the SQL2000/2005 string even though I am using SQLExpress without any problems. Leupold had this to say about the subject:

"sqlExpress string only works as long as you don't touch the database using sql management studio."

My string looks like this:

<add
      name="SiteSqlServer"
      connectionString="Server=Mike\SQL;Database=DotNetNuke;uid=mikekist;pwd=XXXXXX;"
      providerName="System.Data.SqlClient" />

Of course this is when using SQL Server authentication versus Windows authentication which it apprears you are doing. Also I noted that you use just "Ken" for your datasource when I've always expected to use: "MachineName\SQLInstance" as server or ".\SQLInstance" as datasource in the Express string.

I'm not really sure if this does you any good but I think others might be taking a stab at it as well.

Mike