Problems connecting to SQL

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Error on initializing SQL Server. The connection to the host AS01, named instance LDFZ has failed. Error: "java.net.SocketTimeoutException: Receive timed out". Verify the server and instance names, check that no firewall is blocking UDP traffic to port 1434, and for SQL Server 2005 or later verify that the SQL Server Browser Service is running on the host. I installed a fresh Engine and configured it to match the 2.4 settings I already have in production. Keep having problems trying to get the new application to run from the console Application is installed based on the info in the How To deploy 2.5 SQL 2005 server installed, with a fresh engine and the database ready to receive. Suggestions ?
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Seems your database connection settings are wrong or your sql server is not running. Maybe you should use Management studio express (default database admin tool for mssql) to connect to your local sql server. That way you'll know your sql server is running.

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