I looked under folder Program Files\Microsoft SQL Server, I do not have any folder that has $ in its name. In folder MSSQL I have folders Binn,log,data, install. Even they do not have any folder that has $ in its name.

It is chapter 12 in this book where they talk about using OLE to connect to the MSDE. At the same place they also talk about how instead of typing the connecting string you can make a UDL file in note pad to get the string. When I make the UDL file like they said the string that I get is :

[oledb]
; Everything after this line is an OLE DB initstring
Provider=SQLOLEDB.1;Persist Security Info=False;User ID=sa;Initial Catalog=iffo;Data Source=local;Initial File Name=D:\Program Files\Microsoft SQL Server\MSSQL\Data\iffo.mdf"


same that I mentioned before......