Cannot connect to database

Hi Experts,
I now have no hair left and I have exhausted every trick that worked for others...
My environment is 64bit system with exchange. SQL is installed on a hyper-V.
Everything works fine.
This means that Sharepoint is installed, I can ping database from core server and from remote server.
I can log onto the database using ODBC from core server and from remote pc.
I have created the users as recommended BUT when running Sharepoint Products Configuration wizard I get the error:
Cannot connect to database master at SQL Server. I use the same credentials that allows me to access the DB from other apps like VS 2010. I have googled and found many similar issues from others but just cannot get past this point.
Please help
regards
espsAsked:
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KoenVostersConnect With a Mentor Commented:
Did you configure the firewall on your SharePoint box to allow outbound traffic over port port 1433 on TCP and UDP? Or if you are using a non standard SQL port, are you allowing traffic over that one?
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espsConnect With a Mentor Author Commented:
In addition to KoenVorsters comment, the following worked.
I create an admin user on the SharePoint host, I then added this users as an Admin user on the Database server. I then added this user on the SQL DB and important to note, Windows authentication, not SQL and lastley logged onto the SP host machine with the SP Admin user.
When I then ran the config wizard it worked.
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KoenVostersCommented:
Objecting as my answer was a solution to the problem. There was no acces to the sql. That then afterwards you figured out that there were also problems on your sql configuration to get everything working isnt the question you asked initially and neither did u ask for further assistance here.
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nysupportCommented:
I had the same issue.  To get around it I had to add the SharePoint Installer account (the one I'm running PSCONFIG under) as a local admin on the SQL server.
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