odbc sql connection test fails

[vishvar hariraman]

hi everybody,

i m new to sql server and odbc connection
sql server functions well with login and password

but from a servlet,i am connecting to database.
for that i opened ODBC from adminstrative tools.
I added SQL server in System DSN tab, then I give DSN name.
In the drop down menu i cud not find 'local server' on the question "which SQLserver u want to connect it?".

Even then i typed local and proceeds the connection test failed.
wat s the cause for this error?
pls friens clarify this doubt

Thx in advance
Vishnuvardhan.H