My objective: Build and test a SharePoint 2007 environment with virtual machines on Windows Server 2008 R2. Host (DCSERVER)– Windows Server 2008 R2 Enterprise Roles: Domain Controller, Active Directory, DNS Domain Name: LDS Virtual Machines (NAMES) VM1 (SQL-SERVER)– Windows Server 2008 R2 Std. Roles: SQL Server 2008 R2 VM2 (WEB-SERVER)– Windows Server 2008 R2 Web. Roles: IIS7 VM3 (APP-SERVER)– Windows Server 2008 R2 Std. Roles: Application Server SharePoint 2007 Share point installation – used a slipstream installation by deleting contents of update folder and extracting WSS 3.0 SP2 and MOSS 2007 SP2 into the updates folder. Using SharePoint Productivity and Technology Configuration Wizard. 1. Chose Create new server farm. 2. Database Settings dialog box Database Server: SQL-SERVER Database Name: (default) User Name: LDS\Administrator Password: (domain controller password) Get Message “Failed to connect to the database server or the database name does not exist…” Any suggestions what to do from here?