I just had the same problem. When you are setting up the destination database information on the "Configure Destination Database.." page, the default value for the SQL Server field is ".\SqlServer" (assuming you selected "LocalSqlServer" as the Label). That was the problem for me. My local server name is something different. I downloaded the SQL Server Management Studio Express tool(a GUI tool, though you could use the command line interface), and there is was. The root of my server was BES5NY\Blackberry...both names (servername\database name) I hade chosen during the install. So instead of the default (".\sqlserver"), I used ".\blackberry" sicne that was the name I had given to my local instance. That did the trick.