I am installing HMC 4.0.  I am on step DWR.12 of the Deployment Walkthrough, and I receive the errors below when I try and create this database.  My MOM server is installed on my SQL01 server.  The SQL01 server is clustered.  I have a SQL virtual server for my default instance, and a second virtual server for my MOMSQL instance.

C:\Program Files\Microsoft Hosting\Reporting\PWDB40 Package>pwdb40scripts.exe
Microsoft.SqlServer.Management.Common.ConnectionFailureException: Failed to conn
ect to server (local). ---> System.Data.SqlClient.SqlException: An error has occ
urred while establishing a connection to the server.  When connecting to SQL Ser
ver 2005, this failure may be caused by the fact that under the default settings
 SQL Server does not allow remote connections. (provider: Named Pipes Provider,
error: 40 - Could not open a connection to SQL Server)

My servers are set up to allow remote connections, the Named Pipes for both instances are enabled, and all of the SQL services are running, so I'm not sure why it's refusing it.

 
Thanks, Heather