Hi,
Based on your description, you failed to connect SQL Server 2000 instance under the Windows Authentication mode. Generally, the error message “SQL Server does not exist or access denied” indicates the SQL Server service is not running or the name resolution process in Domain Name System (DNS) doesn’t work correctly. To troubleshoot your connectivity problem, please carry out the steps in the following KB article:
http://support.microsoft.com/default.aspx/kb/827422
If there are any more questions, please let me know.
Thanks.
***Xiao Min Tan***Microsoft Online Community***