NEED HELP! - Unable to connect to MSDE Database through Web Matrix Project

I'm new to asp.net and databases and I'm currently working my way through SAMs Teach Yourself ASP.
I am up to working with databases and have successfully installed MSDE using the sql2kdesksp3.exe file. However, when I try to create a new database through the web matrix project I get an 'unable to connect' error. I have tried removing and re-installing the database and I've also re-installed it using the latest file from the MS web site but I still get the same error. I've checked the obvious...that the msde service is running, password is correct, and that checks out ok.
Has anyone had a similar problem and resolved it?
Thanks.

Try this link and download the eval edition of SQL Server. Hope this helps.
http://www.microsoft.com/sql/evaluation/trial/default.mspx

|||Works a treat.
Many thanks!