A: 

What if you use Integrated Security=SSPI?

If you are not wanting to use a windows login I believe the other answer about removing the Integrated Security parameter is correct.

Chrisb
+5  A: 

Remove Integrated Security=True from your connection string and (optional) add Persist Security Info=True;

From MSDN:

Integrated Security - When false, User ID and Password are specified in the connection. When true, the current Windows account credentials are used for authentication.

eu-ge-ne
A: 

Ok - I am guessing you have tried all of these http://blogs.msdn.com/sqlexpress/archive/2005/05/05/415084.aspx

Have you tried sqlping on MACHINENAME\SQLEXPRESS

Can you ping MACHINENAME

Finally, I am pretty sure you only need 1 slash i.e. MACHINENAME\SQLEXPRESS

David E
Thanks for replying :)Yep, I already enabled all of those settings and I can connect to the DB using the Management Studio, I am actually connected with Management Studio right now.I can ping MACHINENAME and it returns 192.168.0.9 (the address of the machine connected to my router).It's two slashes when it's inside a string since the slash is considered a special character.
Lirik
Yes completly correct on two slashes, thought it was in the config. Doh!
David E
A: 

It could be your SQL instance is not cobfigured to accept incoming TCP connections, you can check this under Start-> SQL Server 2008 -> Conguration Tools -> SQL Server Configuration Manager. On the left side in that tool you'll see network configuration, expand it to see which protocols are enabled.

Colin
It's configured to accept TCP connections.I have Management Studio on the same machine as my C# application and I am connected to the DB with the same settings.
Lirik