Can no longer connect as sa

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I downloaded C# 2005 Express and downloaded sql 2005 Express at the same
time. It installed without giving me a chance to set a password.

I am able to connect to it using sqlcmd -E -S localhost\SQLEXPRESS butnot if
I use sqlcmd -S localhost\SQLEXPRESS -U and type in the password.

I get

Login failed for user 'sa' . The user is not associated with a trusted SQL
Server connection.

I set using ALTER LOGIN sa WITH PASSWORD = 'mypassword' Now I used an
example program in c# for Java Developers, changing it a bit.

I put in a connection string containing User ID=sa;PASSWORD=mypassword;
I was able to connect to Northwind, but when I tried to select from table
Customers it said invalid object 'Customers'.

Then I connected with sqlcmd using the -E and then I created a Database
called people, and made a table called person. Still problems inserting from
the program and doing a select. So I removed the User
ID=sa;PASSWORD=mypassword from the connection string, couldn't connect, then
when I put it back I still couldn't connect, getting the same error. I can't
figure out what is slightly different in the connection string.

The connection string currently is

string conStr = @"Data Source=.\SQLEXPRESS;" +
"User ID=sa;PASSWORD=mypassword;" +
"Database=people;" +
"Integrated Security=True";

The error is

Cannot open database \"people\" requested by the login. The login failed.
Login failed for user 'MDG-13E0564D3NC\\MDG User'.

Also still get the same error using the -U option in sqlcmd.

Do I need to make a login for 'MDG-13E0564D3NC\\MDG User'?
How do I get sa associated with SQLEXPRESS?
Searched in google and found advanced stuff that doesn't help

Thanks,
Ralph



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