SBS 2003 Unable to connect to database STS_Config

I have a Windows 2003 Server customer that I recently aquired. In the
application log an entry is made every 20 seconds, #50070, Unabale to
connect to the database STS_Configon servername\SharePoint. Check the
database conneaction information and make sure that the database server
is running. When I try to access companyweb, I get "HTTP Error 401.2 -
Unauthorized: Access is denied due to server configuration.
Internet Information Services (IIS)". I am told historically that MSDE
was removed from the server then re-installed and upgraded to SQL.
This is a production server and therefore, a format and reinstall is
out of the question.

Any assistance is appreciated.

.

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