Deploy to \"LocalHost\"?

I finally got Biztalk 2006 stored on a Virtual PC at work.
It only took 30 minutes on my home PC, but took me about 12 hours to get it done at work. Visual Studio was already install, and SQL 2005 Express. I wasn’t sure, but I assumed Biztalk 2006 needed the developer edition (at least if I wanted to play with BAM).

I was getting a lot of \”trust\” issues, apparently because it was trying to access the domain controller.

I had to take the Virtual PC off the domain [put it into a workgroup only] (which meant uninstalling re-installing SQL2005).

Then I had to allow \”named pipes\” in SQL 2005.

Now I’m trying first deploy of an SDK sample and getting the error below:

Error 2 An error has occurred while establishing a connection to the server. When connecting to SQL Server 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)

I have already enabled \”named pipes\” – so not sure why I’m getting this.

I changed server from \”Localhost\” to \”machinename\\instance\” and it deployed okay.

So why doesn’t local host work? Is it because everything is a named instance with SQL2005? I assume client/network utility is still available – I could map Localhost to \”machinename\\instnace\”?

Thanks!