The SQL Server Databases included in your Hosting Package are hosted on a separate Dedicated 64bit Database Server. Your Website must use the proper server name in order to connect to SQL Database. Using 'localhost' will not work.
The Alias name for SQL Server 2005 is: SQL2K5
Therefore, an ASP.NET connection string may look like:
Server=SQL2K5;Database=[DB Name];User ID=[DB User];Password=[Pwd]
NOTE: Before your Website can connect to the SQL Database, you must
Create the SQL Database and Database User, and
Deploy the initial Database Schema and Data to the Server.