Hi SQL Express is configured by default to allow only local connections using windows authentication. From what that looks is that the IIS is running under an user that the SQL Server does not accept. While I'm no IIS/SQL Server expert, and thus can not really help you to configure them to work like that, what I suggest is that you setup SQL Server to allow both Windows Authentication and SQL Server. Using the SQL Server Management Studio (http://www.microsoft.com/downloads/details.aspx?familyid=C243A5AE-4BD1-4E3D-94B8-5A0F62BF7796&displaylang=en) log in to the server and under the server's "Properties" choose Security and select "SQL Server and Windows Authentication". Then create a user and password with access to your database (in your database "Security" -> "Logins" -> Right click -> "New Login...") and adjust your connection string to use this login, for example: "server=Earthquake\\SqlExpress; user id=UserName; password=Password; database=Database"
This should allow you to use both SQL Express for the final site.
Bruno Sousa Software Consultant http://www.luasys.com