XP unable to access SQL

Environment:
Server 2008 sbs domain
VM 2003r2 member server with sql 2008 express, Firewall disabled
Sql has remote connections and tcp/ip enabled.
VM XP SP3 Firewall disabled
My dot net application works on the 2003 local machine with no access issues to database.
Issue:
My dot net application on the XP is unable to access the database on the 2003 server.

I get the attached error message. It looks like a security or firewall issue to me.

Any suggestions on how to get this to work?

Error.log
hstulbergAsked:
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loftywormCommented:
Do you have mixed mode authentication turned on?
I have found this to be a problem even in network connections.

You can telnet server.com 1433
if it connects, then you know you can reach the port.  Then make sure you syntax is correct.
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Syed Mutahir AliTechnology ConsultantCommented:
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hstulbergAuthor Commented:
Thanks for the solution. It’s always very exciting to see you application start without errors.
I had performed all the actions except enabling the sql browser service before I posted this question.
The article is very accurate and helpful. I will archive it for future reference.
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