Here is some added information that may help.
This is my local machine. I am connecting to the database Adventure works dw 2012 that i downloaded and moved to my data folder and "unblocked it".
I created a login for the AdventureWorksDW2012 and used my current login which is (name)-PC. (Also, i was told by someone i had to use the Adventure Works DW 2012 instead of regular adventure works 2012. I dont know if that is true or not)
I have been playing around with the impersonation information and obviously have been getting different errors with each attempt.
Mostly i have been just trying "Use this service account".
When i installed SQL was there any special configurations i missed?