1) Did you verify the sql user has permissions on the db?
2) Did you verify the username that has access to the database is in the applicationHost.config.
3) run network monitor to see if any connectivity is happening between the web and db server.
Steve Schofield
Windows Server MVP - IIS
http://weblogs.asp.net/steveschofield
http://www.IISLogs.comLog archival solution
Install, Configure, Forget