After couple of hours searching the net:
the server was somehow disabled???hmmm wierd!
this was the solution:
Microsoft SQL Server 2005 -> Configuration Tools -> Configuration Manager
SQL Server 2005 Services -> SQL Server (SQLEXPRESS) ==> needs to be set to start again
hope this could help others with same problem
Microsoft is conducting an online survey to understand your opinion of the Msdn Web site. If you choose to participate, the online survey will be presented to you when you leave the Msdn Web site.
Would you like to participate?