I have some more information which may be of use.
If I leave the script running for a while then the following output occurs.
Start connection
Microsoft SQL Native Client error '80004005'
SQL Network Interfaces: Error Locating Server/Instance Specified [xFFFFFFFF].
/dbconnect.asp, line 22
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by: mike99cPosted on 2009-09-30 at 03:49:33ID: 25457144
Following on from my post. I noticed that the Authentication mode was set to Windows Authentication only. I have since changed this to Windows Authentication and SQL Server Authentication since we are connecting to the database using SQL Server Authentication.
I restarted the server but still have the same problem.