Cannot install 7.6 log server due to db connection errors

I have installed Websense 7.6 at 3 seperate locations without problems. I have a SQL 2005 express SP4 instance SQLEXPRESS when I try to install I receive the error "Websense reporting tools do not work with the version of SQL you hve installed."

I also have a freshly installed 2008 express R2 instance SQLEXPR2008 when I try to install to this instance I receive "Unable to connect to SqlServer located at:"

I looked at the KB articles:

http://www.websense.com/support/article/t-kbarticle/Reporting-installation-error-the-host-name-does-not-match-the-MSDE-SQL-Server-name

http://www.websense.com/support/article/kbarticle/Websense-Reporting-Tools-Do-Not-Work-with-the-Version-of-SQL-you-have-Installed

However when I run EXEC sp_helpserver it is reporting the correct servername\instancename so I do not want to blow that away since it is configured correctly. I need help, this project is due tonight and I am completely stuck!

Thank you much,

Mike