Hi!  The good news is that there is only a finite number of possibilities...actually, they are a rather small finite number

I know that your connection string is not correct, so let's try to connect to your database first.

1) If possible open SQL Server Management Studio (SSMS).
2) You will see a "Connect To Server" dialog window.  Use the following values:
      a) Server Type: Database Engine
      b) Server Name: .\ThisIsWhatNeedsToBeYourSQLSrvInstance - Note that there is a DOT with a backslash "\" rather than a forward slash as you show above.  If your machine name shows you can use this in place of the "." DOT.  Either is fine...
      c) Authentication: Windows Authenticatioin
3) Once connected on the left you "should" see an "Object Explorer" pane that will allow to expand the Database leaf - Expand the Database leaf to view all the databases (Microsoft install some by default).
4) If you do NOT see your database, which you show to be test2, then repeat steps 2 & 3 until you find it.  You can also create a database called test2 at this point, but do not do so until you've first searched for it because the possible locations where it could be might include something like:
      a) .\SQLExpress (which is installed when installing some/most versions of Visual Studio 2005.
      b) .\MSSQLServer2005 - just an example...this is your SQL 2K5 instance, OR
      c) .\MSSQLServer2000 - just an example - this would be your SQL 2K instance "if" you have this installed.
5) "If" you find your test2 database located under (c) in Step 4, then you will want to create a new database, test2, for your SQL 2005 Server.  An obvious distinction between these two versions is that SQL 2000 will show "SQL Server 8.0.2039" in the Summary tab when selected, and SQL 2005 will show "SQL Server 9.0.1399".  Use the later if you do not find your test2 database under the Database leaf in the Object Explorer.

Now that we have verified "where" your database is check to see if there are any tables in this database.  If so delete it to simply start "clean".  Next expand the "Security" leaf that is off the registered SQL Server (same level as Database and NOT under the test2 database you created). Under Logins verify that there is a test2 uid.  If you find it delete it (I'll explain...), and then right click over Logins and select "New Login...".Add a Login Name of "test2" and click the SQL Server Authentication radio button.  Add the pwd of "test2" and confirm it's entry. Just below this uncheck "Enforce password expiration" and "User must change..." check boxes.  Click OK to create the new Login account.  (I had you delete this Login just to make sure that you password, test2, was correct.).

Right click on your new Login, test2, and select Properties (I know, I brought you right back to that previous windows...  ).  From the left select "User Mappings".  Locate the "test2" database and check the checkbox.  In the "User" column make sure "test2" is entered.  In the lower panel, "Database role membership for: test2" check db_owner and public (if not check already).  This gives this Login dbo rights, which are needed.

You are all set to try to load your site again.  Your connection string will be similar to the following:
    <!-- Connection String for SQL Server 2000/2005 - kept for backwards compatability - legacy modules -->
    <add key="SiteSqlServer" value="Server=.\ThisIsWhatNeedsToBeYourSQLSrvInstance ;Database=test2;uid=test2;pwd=test2;"/>

Delete or comment out the SQLExpress connect string, if it exists in your web.config.  Since I couldn't user screenshots this was a bit verbose, so I apologize.  I'm not going to call you clueless, but put your firewall back on.  What you are doing that is correct is "digging in".  Before you know it you will be helping others out with connection issues!!!  If you would like you can email me at itfriend@dls.net, but I prefer to keep all the dialog here so others might benefit.

Best of Luck! John