Refusing Socket MSSQL Server

I'm attempting to add a MS SQL Server data source and am not having much luck. I've set up connections in the past (I'm actually moving existing sites to a new local computer). The datasource type is Microsoft SQL Server. I've verified that the username is built into the db and passwords are built good. I've also verified that the server is in "mixed mode" and the port is correct. I'm able to connect to an ODBC Socket and use it as a datasource using the same user/login but for some reason when I try to add the datasource as a Microsoft SQL Server type, I'm receiving an error establishing socket. (connection refused)... need some help trying to get to the bottom of this. Any troubleshooting tips are appreciated.

OS: MS XP Pro
CF: latest
DB: MS SQL Server

Thanks in advance,
dj