Question : error: 26 - Error Locating  Server/Instance  Specified

Hi guys, I know there are many topics on this subject, but I have quite a strange issue when publishing my web application.
I work for an web site in Visual Studio 2008, ASP.Net 2.0, SQL Server 2005, IIS6, within an intranet domain.
I have 2 folders created on IIS server, one for development and the other for production.
My previous application version works fine published on any of the 2 folders, but my current doesn't, providing the "error 26" from the title, despite that I have the same connection string in web.config. (they are identical).
What else should I check?
 Please ask for code specifically, if needed.
Thanks
Daniel

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Server Error in '/pricingtools' Application.
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An error has occurred while establishing a connection to the server.  When connecting to SQL Server 2005, this failure may be caused by the fact that under the default settings SQL Server does not allow remote connections. (provider: SQL Network Interfaces, error: 26 - Error Locating Server/Instance Specified) 
Description: An unhandled exception occurred during the execution of the current web request. Please review the stack trace for more information about the error and where it originated in the code. 

Exception Details: System.Data.SqlClient.SqlException: An error has occurred while establishing a connection to the server.  When connecting to SQL Server 2005, this failure may be caused by the fact that under the default settings SQL Server does not allow remote connections. (provider: SQL Network Interfaces, error: 26 - Error Locating Server/Instance Specified)

Source Error: 
An unhandled exception was generated during the execution of the current web request. Information regarding the origin and location of the exception can be identified using the exception stack trace below. 

Stack Trace: 

[SqlException (0x80131904): An error has occurred while establishing a connection to the server.  When connecting to SQL Server 2005, this failure may be caused by the fact that under the default settings SQL Server does not allow remote connections. (provider: SQL Network Interfaces, error: 26 - Error Locating Server/Instance Specified)]
   System.Data.SqlClient.SqlInternalConnection.OnError(SqlException exception, Boolean breakConnection) +821651
   System.Data.SqlClient.TdsParser.ThrowExceptionAndWarning(TdsParserStateObject stateObj) +186
   System.Data.SqlClient.TdsParser.Connect(ServerInfo serverInfo, SqlInternalConnectionTds connHandler, Boolean ignoreSniOpenTimeout, Int64 timerExpire, Boolean encrypt, Boolean trustServerCert, Boolean integratedSecurity, SqlConnection owningObject) +759074
   System.Data.SqlClient.SqlInternalConnectionTds.AttemptOneLogin(ServerInfo serverInfo, String newPassword, Boolean ignoreSniOpenTimeout, Int64 timerExpire, SqlConnection owningObject) +114
   System.Data.SqlClient.SqlInternalConnectionTds.LoginNoFailover(String host, String newPassword, Boolean redirectedUserInstance, SqlConnection owningObject, SqlConnectionString connectionOptions, Int64 timerStart) +421
   System.Data.SqlClient.SqlInternalConnectionTds.OpenLoginEnlist(SqlConnection owningObject, SqlConnectionString connectionOptions, String newPassword, Boolean redirectedUserInstance) +181
   System.Data.SqlClient.SqlInternalConnectionTds..ctor(DbConnectionPoolIdentity identity, SqlConnectionString connectionOptions, Object providerInfo, String newPassword, SqlConnection owningObject, Boolean redirectedUserInstance) +173
   System.Data.SqlClient.SqlConnectionFactory.CreateConnection(DbConnectionOptions options, Object poolGroupProviderInfo, DbConnectionPool pool, DbConnection owningConnection) +133
   System.Data.ProviderBase.DbConnectionFactory.CreatePooledConnection(DbConnection owningConnection, DbConnectionPool pool, DbConnectionOptions options) +30
   System.Data.ProviderBase.DbConnectionPool.CreateObject(DbConnection owningObject) +424
   System.Data.ProviderBase.DbConnectionPool.UserCreateRequest(DbConnection owningObject) +66
   System.Data.ProviderBase.DbConnectionPool.GetConnection(DbConnection owningObject) +494
   System.Data.ProviderBase.DbConnectionFactory.GetConnection(DbConnection owningConnection) +82
   System.Data.ProviderBase.DbConnectionClosed.OpenConnection(DbConnection outerConnection, DbConnectionFactory connectionFactory) +105
   System.Data.SqlClient.SqlConnection.Open() +111
   System.Web.DataAccess.SqlConnectionHolder.Open(HttpContext context, Boolean revertImpersonate) +84
   System.Web.DataAccess.SqlConnectionHelper.GetConnection(String connectionString, Boolean revertImpersonation) +197
   System.Web.UI.WebControls.WebParts.SqlPersonalizationProvider.GetConnectionHolder() +16
   System.Web.UI.WebControls.WebParts.SqlPersonalizationProvider.LoadPersonalizationBlobs(WebPartManager webPartManager, String path, String userName, Byte[]& sharedDataBlob, Byte[]& userDataBlob) +195
   System.Web.UI.WebControls.WebParts.PersonalizationProvider.LoadPersonalizationState(WebPartManager webPartManager, Boolean ignoreCurrentUser) +95
   System.Web.UI.WebControls.WebParts.WebPartPersonalization.Load() +105
   System.Web.UI.WebControls.WebParts.WebPartManager.OnInit(EventArgs e) +497
   System.Web.UI.Control.InitRecursive(Control namingContainer) +321
   System.Web.UI.Control.InitRecursive(Control namingContainer) +198
   System.Web.UI.Control.InitRecursive(Control namingContainer) +198
   System.Web.UI.Page.ProcessRequestMain(Boolean includeStagesBeforeAsyncPoint, Boolean includeStagesAfterAsyncPoint) +834

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Version Information: Microsoft .NET Framework Version:2.0.50727.1873; ASP.NET Version:2.0.50727.1433

Answer : error: 26 - Error Locating  Server/Instance  Specified

Sorry, typo when copying and pasting.
That should have been
For /F "tokens=1*" %a in ( 'FIND /i "L3= " C:\zzsticker.txt' ) do set L3=%b
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