--- Error msg
System.Data.SqlClient.SqlException was unhandled by user code
  Message="An error has occurred while establishing a connection to the server. When connecting to SQL Server 2005, this failure may be caused by the fact that under the default settings SQL Server does not allow remote connections. (provider: SQL Network Interfaces, error: 26 - Error Locating Server/Instance Specified)"
  Source=".Net SqlClient Data Provider"

--- Error location
line 120 of App_code.ha5hlyyr.24.cs

Please let me know how to set it right. Thanks.

I will suggest two steps:
1)On Web.Config make sure you update the connection string as shown below:

   <connectionStrings>

           <remove name="LocalSqlServer"/>
           <add name="LocalSqlServer" connectionString="Data Source=NR2005;Initial Catalog=TheBeerHouse;Integrated Security=True"
            providerName="System.Data.SqlClient"/>

   </connectionStrings>

I am using SQL 2005 enterprise edition and I have a named server (NR2005).

2) SQL 2005 doesn't allow remote access by default. http://www.datamasker.com/SSE2005_NetworkCfg.htm has a very good explanation on how to configure SQL 2005 to allow remote connections.

I had the same problem and these steps solved the problem.

Good Luck

I'm getting the same error when I publish the site to my site. I'm still working on it. There's SO much to learn.

You should always get SQL Server working first before you use the C# code. Use Sql Server Management Studio to connect to your DB and pay attention to the name of the DB and your authentication method. On a local computer it typically uses Windows authentication, which means you don't have to log on. This is a good method, and you can indicate that in your web.config connection string also.
  However, you don't have to mess around with connection strings if you're using SQL Server 2005 Express because it's set up to automatically connect you to a database installed under the app_data folder.
  You only need to mess with connection strings if you're not using the Express version, or if you are using the Express version but you want to connect from a non-ASP.NET application.
  Please read the readme.txt in the code download.

Eric