The connection string is not in web.config. The only thing in web.config is the location of all of the other config files (one for each module). The .config files in the config subdir have your connection string. For most of us, we'll put the same connection string in every config file. The actual string depends on your database configuration.
If you want to use Windows authorization to access the DB you don't need a username and password. This is a typical connection string for use with Windows auth:
"Data Source=(local);Initial Catalog=ThePhile;Integrated Security=SSPI"
This will help you with connection strings:
Your other problem about the namespace is probably caused by installing the project into your IIS root folder instead of using a virtual directory named "ThePhile".