Enabling remote connection is another important, yet oft-neglected step that is frequently missed by database administrators while setting up SQL Server. If this feature is turned off SQL Server will function smoothly on local machine, but it will let another server connect to it remotely. By default this feature is ON in SQL Server 2008.
Right click on the server node and select Properties.
Go to Left Tab of Connections and check “Allow remote connections to this server”
5) Enable SQL Server Browser Service
If SQL Server is not installed as default instance but instead installed as named instance and also if there is no specific TCP/IP port configured, it will give rise to the error that is being discussed in this article. If SQL Server Browser service is enabled, it will allow the server to be connected through dynamic TCP/IP port. Enabling this service is a one-time process, as on enabling it once it will apply to all the instances installed on the same server.
Go to All Programs >> Microsoft SQL Server 2008 >> Configuration Tools >> SQL Server Configuration Manager >> SQL Server Browser
Right Click on SQL Server Browser >> Click on Enable
6) Create exception of sqlbrowser.exe in Firewall
As elucidated in Step 6, sqlbrowser service needs to be enabled for named instance. Windows Firewall may prevent sqlbrowser.exe to execute. So, it is imperative to add exception for the same in windows firewall.
Search for sqlbrowser.exe on your local drive where SQL Server is installed. Copy the path of the sqlbrowser.exe like C:\Program Files\Microsoft SQL Server\90\Shared\sqlbrowser.exe and create the exception of the file in Firewall, as delineated in Step 3.
7) Recreate Alias
It is getting quite common to create alias of SQL Server and use it in application. This will ensure that in future if any physical SQL Server has to be moved, it will not be required to change any code or connection string. You can simply create alias with the same name pointing to different SQL Server and it will start working instantaneously. I have observed that a couple of times due to internal error while recreating alias this error was fixed.
Go to All Programs >> Microsoft SQL Server 2008 >> Configuration Tools >> SQL Native Client 10.0 Configuration >> Aliases
Delete the alias that is giving problem and recreate it with identical parameters.
I have tried my best to include all the methods of fixing this error and if I have missed any, please leave a comment and I will be very glad to include them here. I have put in my effort to encompass this issue in one article that needs to be refereed when any connection error comes up.