Thank you for the the reply, here are the details:
In VS2008, are you creating forms or debugging someone's created forms?
-- I am creating the new forms and saving the data to the SQL Server 2005
Where is the SQL 2005, is it in the same domain,then how are you connecting to it using SQL Login or WIndows Authentication?
-- Using Windows Authentication mode
Were you able to connect to the SQL 2005 server earlier?
-- No not able to connect at all