I am trying to create an SQL Server Instance. Had to install SQL 2008. Keep getting a SQL Server Login error as follows:

Connection failed:
SQLState:'01000'
SQL Server Error: 2
[Microsoft][ODBC SQL Server Driver][Shared Memory]ConnectionOpen(Connect()).
Connection failed:
SQLState: '08001'
SQL Server Error:12
[Microsoft][OSBC SQL ServerDriver][Shared Memory]Sql Server does not exist or access denied.

The SQL Server says it is running in the config mgr and I enabled everything that could be enabled and rebooted.

I am running 4 drives on a Raid 5 - one drive member failed (on order) if that matters.

What is the problem????