Wow... ok- maybe this will stir a response:
SQL express is listening on Port 1860... SQL Browser service IS running. I can connect to the DB from another server which is on the same subnet... users are NOT on the same subnet... do I need to specify the port or something in the connection string?
REally at a loss as to how the connection could test successfully, and still give "cant connect to the database"... any thoughts would be appreciated.