Thank you for your help. In troubleshooting the problem I also tried installing SQL Express 2008 on a test machine and was getting the same results. After much research on the internet and following SQL troubleshoot guides, I found the solution to my problem. The server was infact not listening on port 1433 (the port number was blank). I just did not know were to go to look.
The setting I needed was in SQL Server Configuration Manager - SQL Server Network Configuration - Protocals for XXXX (the sql instance name) - Right Click TCP/IP - Properties - IP Addresses Tab - IPALL - TCP Port