Hey all,
I know this is an old topic, but I just spent several hours solving this exact problem. I discovered that the Client Network Utility for SQL Server had incorrect aliases set up for it; deleting them fixed it for me. I'm using SQL Server 2000 SP4, and the particular patch for me was KB960082.
Here's what I did to fix it:
1. On your SQL Server, open up the Client Network Utility (Start-->Programs-->Microsoft SQL Server-->Client Network Utility)
2. Click the "Alias" tab.
3. If you have any aliases defined, delete them.
Hopefully someone else will find this to be useful.
--Mr. SQL Guy