This week's book giveaway is in the OO, Patterns, UML and Refactoring forum. We're giving away four copies of Refactoring for Software Design Smells: Managing Technical Debt and have Girish Suryanarayana, Ganesh Samarthyam & Tushar Sharma on-line! See this thread for details.
Is your MS SQL server on the same machine as you are running your code on, or are they on different boxes? If different boxes, I'd check for a firewall configuration problem. Don't use win2k3, but on winxp you hit that problem.