Computer SQL2 (Windows Server 2003 Enterprise SP1) has SQL 2005 installed.
Computer POYTS3 (Windows Server 2003 Standard SP1) has Microsoft SQL Server Management Studio installed.

I login to POYTS3 remotely using Remote Desktop Connection and start Management Studio. Trying to connect to SQL2. Getting the following error:

TITLE: Connect to Server
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Cannot connect to SQL2.
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ADDITIONAL INFORMATION:

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: Named Pipes Provider, error: 40 - Could not open a connection to SQL Server) (Microsoft SQL Server, Error: 2)

For help, click: http://go.microsoft.com/fwlink?ProdName=Microsoft+SQL+Server&EvtSrc=MSSQLServer&EvtID=2&LinkId=20476

If it is because I login remotely then how to change default settings to allow remote connections?
If not then what else should I look for?