Hi
Jayanth_Kurup,
I discovered I could connect via Widows Authentication, but when I changed the password it still didn't work.
So I checked the error log and found that the installation was not configured to accept mixed mode authentication.
So I got in again via Windows Auth and changed the settings.
http://msdn.microsoft.com/en-us/library/ms188670.aspx.
It's Okay now. Thanks.