You obviously want to to connect to a ASPNETDB that isn't located in the default directory of the web project, so...
I found a good method to move the location of the ASPNETDB database in Visual Studio 2008 to a different location on a machine wide level. You can override this setting by editing the webapp.config but I consider that more complicated and unnecessary in most cases.
By default, new web projects will place your application database in the App_Data folder and that allows you to use a file based SQL. I don't like having my applications core database off of the root of the publicly accessible site and so I prefer the application connect to the SQL server service in the usual way.
You can setup your dev project to reflect the live site you deploy to. To accomplish this just do the following for Visual Studio 2008:
A. Uninstall all previously existing Microsoft SQL server instances, including SQL 2005 and any lite or compact editions. This requires a system restart. Note: backup any databases you have by detaching them with SSMSE and then saving the mdf and ldf files somewhere safe. If you are running x64 Vista then you can delete the SQL Server directories in the x86 Program Files directory.
B. Reboot and install SQL Server 2008. After installation, enable "Named Pipes" and "TCP" listener protocols for the service. Also, enable the "sa" account and set the password for the "sa" account. Also, change SQL server instance to use "mixed mode authentication".
C. Edit the C:\Windows\Microsoft.NET\Framework\v2.0.50727\CONFIG\machine.config so that you have this in the connectionstrings section:
ADD name="LocalSqlServer" providerName="System.Data.SqlClient" connectionString="data source=LOCAL\SQLEXPRESS;Integrated Security=SSPI;database=aspnetdb"
D. Find the aspnet_regsql.exe and run it to create the aspnetdb database. When it asks for the database name choose "default" and it creates a database called "aspnetdb".
E. Make the app useable via IIS without your debug environment by using non-integrated security. You need to "enable" the disabled "sa" account, make "sa" the owner of the aspnetdb database, and then make sure your SQL Server has "SQL Server Authentication Mode" enabled. Finally, add this section to your webapp.config file:
*ADD name="LocalSqlServer" providerName="System.Data.SqlClient" connectionString="Server=LOCAL\SQLEXPRESS;Database=aspnetdb;User Id=sa;Password=password;Trusted_Connection=False"*