Did you enable Shared Memory and TCP/IP providers in SQL configuration?
If not, try opening the SQL Server Configuration Manager utility and enabling Shared Memory and TCP/IP. The order that works for me is Shared Memory (1) and TCP/IP (2) for both server and client.
Also, make sure you are creating both a SQL LOGIN and DATABASE USER for PASCAL with correct rights.
Check out my blog article on creating logins. http://craftydba.com/?p=656
The snippet below will blow away and recreate your login/user with the correct default database, default schema and read/write privileges.
-- Which database to use.
USE [TLP]
GO
-- Delete existing user.
IF EXISTS (SELECT * FROM sys.database_principals WHERE name = N'pascal')
DROP USER [pascal]
GO
-- Which database to use.
USE [master]
GO
-- Delete existing login.
IF EXISTS (SELECT * FROM sys.server_principals WHERE name = N'pascal')
DROP LOGIN [pascal]
GO
-- Add new login.
CREATE LOGIN [pascal] WITH PASSWORD=N'test', DEFAULT_DATABASE=[TLP]
GO
-- Which database to use.
USE [TLP]
GO
-- Add new user.
CREATE USER [pascal] FOR LOGIN [pascal] WITH DEFAULT_SCHEMA=[dbo]
GO
-- Add to database read / write roles
EXEC sp_addrolemember 'db_datareader', 'pascal'
EXEC sp_addrolemember 'db_datawriter', 'pascal'
GO
-- Add to database owner role?
-- Only give out if application needs a high level of privileges.
-- EXEC sp_addrolemember 'db_owner', 'pascal'
-- GO
Server level protocols.
Client level protocols.
I never choose NETBIOS since it is a non-routable protocol.
If you are still having issues, please post a screen shot and more details.