SBS Monitoring and Udates - SQL Problems

On SBS 2003 a recent install of which I have done many, clicking on Updates brings up a debug screen that says SQL server does not exist and when I go to Monitoring and reporting it shows the page cannot be displayed.....all this is quite strange as its a new install with only Updates and service packs applied..I am also getting an event log error of 421.  .....  Ok Screens are posted below for both problems so hope you can help me with a solution to these as I have no explanation for these problems.

UPDATES SCREEN ERROR SHOWS -
Server Error in '/UpdateServices' Application.
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SQL Server does not exist or access denied.
Description: An unhandled exception occurred during the execution of the current web request. Please review the stack trace for more information about the error and where it originated in the code.

Exception Details: System.Data.SqlClient.SqlException: SQL Server does not exist or access denied.

Source Error:

An unhandled exception was generated during the execution of the current web request. Information regarding the origin and location of the exception can be identified using the exception stack trace below.  
SqlException: SQL Server does not exist or access denied.]
   System.Data.SqlClient.ConnectionPool.CreateConnection() +406
   System.Data.SqlClient.ConnectionPool.UserCreateRequest() +151
   System.Data.SqlClient.ConnectionPool.GetConnection(Boolean& isInTransaction) +464
   System.Data.SqlClient.SqlConnectionPoolManager.GetPooledConnection(SqlConnectionString options, Boolean& isInTransaction) +372
   System.Data.SqlClient.SqlConnection.Open() +384
   Microsoft.UpdateServices.DatabaseAccess.DBConnection.Connect(String connectionString) +311
   Microsoft.UpdateServices.DatabaseAccess.DBConnection.Connect() +567
   Microsoft.UpdateServices.Internal.GenericDataAccess.ExecuteSP(String spName, DBParameterCollection args, IExecuteSPHandler handler, Int32 queryTimeoutInSeconds) +226
   Microsoft.UpdateServices.Internal.GenericDataAccess.ExecuteSP(String spName, DBParameterCollection args, IExecuteSPHandler handler) +17
   Microsoft.UpdateServices.Internal.DataAccess.ExecuteSPMultipleResultSets(String spName, DBParameterCollection args, Type[] resultTypes) +198
   Microsoft.UpdateServices.Internal.DataAccess.ExecuteSPGetConfiguration() +147
   Microsoft.UpdateServices.Internal.BaseApi.UpdateServerConfiguration.Load() +143
   Microsoft.UpdateServices.Internal.BaseApi.UpdateServerConfiguration..ctor() +84
   Microsoft.UpdateServices.Internal.ClassFactory.CreateWellKnownType(Type type, Object[] args) +534
   Microsoft.UpdateServices.Internal.ClassFactory.CreateInstance(Type type, Object[] args) +191
   Microsoft.UpdateServices.Internal.BaseApi.UpdateServer.GetConfiguration() +45
   Microsoft.SBS.UpdateServices.DataProvider..ctor() +120
   Microsoft.SBS.UpdateServices.StatusPage.Utility.SyncInProgress(DataProvider dp) +155
   Microsoft.SBS.UpdateServices.StatusPage.formHome.Page_Load(Object sender, EventArgs e) +290
   System.Web.UI.Control.OnLoad(EventArgs e) +67
   System.Web.UI.Control.LoadRecursive() +35
   System.Web.UI.Page.ProcessRequestMain() +750

 


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Version Information: Microsoft .NET Framework Version:1.1.4322.2407; ASP.NET Version:1.1.4322.2407

MONITORING AND REPORTING SCREEN SHOWS

The page cannot be displayed
An error occurred on the page you are trying to view.

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To work around this problem, perform the following steps. After each step, try again to access the page.

Ensure that the MSSQL$SBSMONITORING service is started.
Ensure that the server is not low on memory or disk space.
Restart the server.
Verify that the server is functional and that there are no system-wide problems.
Run the Set Up Monitoring Reports and Alerts task in the Server Management Monitoring and Reporting taskpad

EVENT LOG ERROR SHOWS - EVENT 421 - source = update sevices
Connection to database failed. Reason=SQL Server does not exist or access denied.. Connection string: Data Source=SVR-PTCOMMS\WSUS;Initial Catalog=SUSDB;Connection Timeout=60;Application Name=WSUS SQL Connection;Trusted_Connection=Yes;Pooling='true'; Max Pool Size = 100