ConnectionStrings.com has examples of all kinds of connection string:
SQL Server
SQL Server 2005
SQL Server 2005 Compact Edition
Using a connection string for SQL Server with a file path in it is for SQL Server 2005 Express. This allows dynamic attaching to the MDF/LDF files.
"(local)" should be enough if you have a default local installation of the database. If you created a named instance then you can use "localhost\instancename".
-Peter