Study this link to Resolve your Error.
It might be surface area configuration error or sql service configuration issue. Have a look at this thread for potential reasons and resolutions: Resolving A network-related or instance-specific error occurred while establishing a connection to SQL Server[^]
If needed, See steps for setting up Surface area configuration here..
If this does not resolve your issue, have a look at these thread:
http://forums.asp.net/t/1334649.aspx
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SQL SERVER FIX ERROR (provider: Named Pipes [^]
Quite few possible reasons and resolutions are proposed here too.
Happy Coding
:)