SQL Server 2008 Express R2 on Win7 Ultimate 64 can't connect to Management Server

Hi Everybody,

I installed SQL Server 2008 R2 Express Edition on Windows 7 Ultimate 64-bit to host sites using IIS7. I restarted after the install, and opened up Management Studio. I have the perimeters correct (see below screenshot 1) but it can't conect.

Thanks in advance,
DFiel

Screenshots:

1.

EDIT: Here is the output of the Problem Steps Recorder. To download the file, go to: http://www.2shared.com/file/iiwV1mnn/Problem_20120622_1325.html
The password is microsoft.
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