After a long time I face above error when I have configured new Microsoft SQL Server 2005 instance in my one of the computer and tried to access it from other computer in network from Asp.Net web application. This is really annoying error but the solution for this error is really quite simple. I knew where to go and that is why I fixed it in even less than 2 minutes but I thought it might be helpful to my reader.
Select second option, click on “Apply” button and then “OK” button . That’s it, You are done, now, restart your service and enjoy your connection.