Error in connecting SQL server 2005

[alok7727]

I am trying to connect to a SQL server 2005 located on the local machine and it is giving me the following err
An error has occurred while establishing a connection to the server. When connecting to SQL Server 2005, this failure may be caused by the fact that under the default settings SQL Server does not allow remote connections. (provider: Named Pipes Provider, error: 40 - Could not open a connection to SQL Server).Net SqlClient Data Provider

 

[Paszt]

Details

What method are you using to connect to the database?
What does your connectionstring look like?

 

[alok7727]

Here is the Connection string:
Dim con As New SqlConnection()
con.ConnectionString = "data source =Contract; user id =sa; password=dipl0m@t;"