The server in the connectionstring is probably one of the following:
"(local)\DBMSDE" - That's your instancename
"(the name of your machine)\(instancename)"
2. Don't bother with the services now,you don't need them.
3. and 4.
and download their
"sql web data administrator"
If you have problems with running it, then go to their forum
They describe all the solutions.
With that tool, you can do all the administration, you wish, and it it is difficult otherwise.