Tried Several thing finally realized first thing I should have checked would be to disable and check the connection. 
 

Ok this is on a Windows 7  Machine running a SQL Server 2008 R2 Express Edition SQL Server. 


OK FEW THINGS U CAN TRY IF THIS IS NOT RESOLVED BY DISABLE FIREWALL

U need togo to Configuration Tools, hit the "Server Network Configuration",
 go to the "TCP/IP" tab, then right-click and select
 Property, then go to the "IP Addresses" tab and explicit enable the IP addresses listed on that page.
 

So, just enabling TCP/IP wasn't enough.
The specific IP (e.g.: 127.0.0.1) remain disabled by default.
Until I enable them, nothing works. 
 After that, everything works.


HERE IS HOW U DO THE FIREWALL RIGHT 

Note If you are running multiple instances of SQL Server, you will have to create an exception for each instance.

   1. Click Start, and then click Run.
   2. In the Run dialog box, type Firewall.cpl, and then click OK.
   3. In the Windows Firewall dialog box, click Add a Program on the Exceptions tab.
   4. In the Add Program dialog box, you can select an instance of SQL Server or you can click the Browse button to locate the instance of SQL Server that you want to add to the exception list. The default installation locations for SQL Server are listed in the following table.

      Collapse this tableExpand this table
      Version	File path
      SQL Server 7.0	Mssql\Binn\Sqlservr.exe
      SQL Server 2000 Default Instance	Program Files\Microsoft SQL Server\Mssql\Binn\Sqlservr.exe
      SQL Server 2000 Named Instance	Program Files\Microsoft SQL Server\Mssql$instancename\Binn\Sqlservr.exe
      SQL Server 2005 Default Instance	Program Files\Microsoft SQL Server\MSSQL.x\MSSQL\Binn\sqlservr.exe
      SQL Server 2005 Named Instance	Program Files\Microsoft SQL Server\MSSQL.x\MSSQL\Binn\sqlservr.exe

      Note Each SQL Server 2005 instance is made up of a distinct set of services with specific settings for collations and other options. The directory structure, registry structure, and service names all reflect the specific instance ID of the SQL Server instance that is created during SQL Server 2005 Setup. x is the instance ID of the SQL Server instance that is created during SQL Server 2005 Setup.
   5. Select the name of the instance, and then click OK.
   6. Under Programs and Services, select the check box that is next to the name you selected in step 6, and then click OK. 

How to use Multiprotocol Remote Procedure Call (RPC)
If you are using Multiprotocol, you must perform the steps in the "Create an exception for each instance of SQL Server" section as well as open the correct TCP ports on Windows Firewall.
How to run RPC over TCP
Warning Serious problems might occur if you modify the registry incorrectly by using Registry Editor or by using another method. These problems might require that you reinstall your operating system. Microsoft cannot guarantee that these problems can be solved. Modify the registry at your own risk.

To run RPC over TCP, follow these steps:

   1. Enable port 135 on Windows Firewall. To do this, follow these steps:
         1. Click Start, and then click Run.
         2. In the Run dialog box, type Firewall.cpl, and then click OK.
         3. On the Exceptions tab, click Add Port.
         4. In the Port number box, type 135, and then click the TCP button.
         5. In the Name box, type a name for the port such as MULTI, and then click OK.
         6. On the Exceptions tab, you will see the new service. To enable the port, click to select the check box next to your new service, and then click OK.
   2. Modify the \\HKLM\SOFTWARE\Policies\Microsoft\Windows NT\RPC registry key.

      Note If you have just installed SQL Server, this registry key does not exist. You will have to create the key and set the value. To do this, follow these steps:
         1. Click Start, and then click Run.
         2. In the Run dialog box, type Regedit, and then click OK. This will start Registry Editor.
         3. Locate the \\HKLM\SOFTWARE\Policies\Microsoft\Windows NT\RPC Registry key.
         4. Set the RestrictRemoteClients key to 0.
         5. Quit Registry Editor
   3. Restart the computer that is running SQL Server.

How to use RPC over Named Pipes
If you are running RPC over Named Pipes, you must open port 445 on Windows Firewall. To do this, follow these steps:

   1. Click Start, and then click Run.
   2. In the Run dialog box, type Firewall.cpl, and then click OK.
   3. On the Exceptions tab, click Add Port.
   4. In the Port number box, type 445, and then click the TCP button.
   5. In the Name box, type a name for the port such as MULTI, and then click OK.
   6. On the Exceptions tab, you will see the new service. To enable the port, click to select the check box next to your new service, and then click OK.