VB Express can't connect to anything

I installed the latest version of VB Express & SQL Express with no trouble. VB fails to connect to any database -- even the sample applications fail with an SQL Exception:

System.Data.SqlClient.SqlException was unhandled
Class=20
ErrorCode=-2146232060
LineNumber=0
Message="An error has occurred while establishing a connection to the server. When connecting to SQL Server 2005, this failure may be caused by the fact that under the default settings SQL Server does not allow remote connections. (provider: Named Pipes Provider, error: 40 - Could not open a connection to SQL Server)"
Number=2
Server=""
Source=".Net SqlClient Data Provider"
State=0

Since everything is on my local PC why would there be a reference to remote connections?

I'm sure this is something simple -- but what?

Thanks

Birk Binnard
.

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