Right. The approach shown in the tutorial only works for Sql Server Express. If you have two version of Sql Server Espress on your machine, I am not sure how VWD will decide which one to pick, or whether it asks you to decide.
To be honest with you, I don't like the database tools in VWD/VS. I use Sql Server Management Studio to build a database, and then connect to the database from VWD/VS after I have built it.