John,
It works for me when I give machineName\ASPNet account (or NT Authority\Network service under win2003) access to my SQL server (as it did before with vs2003). Probably in IIS anonymous is not allowed).
Cetin

>Did you ever figure this one out. I'm curious about the result.
>
>
>>I'm sure this is a known problem, but I can't seem to find the fix.
>>
>>My VS2005 app connects to the SQL Server database through web services. If I connect with a connection string that uses userid and password, no problem. But, if I change that to use a Trusted_Connection instead, it won't work.
>>
>>This worked fine when the app was compiled under VS2003, but has not since migrating it to VS2005. Is there some setting I need to tweak somewhere? In IIS maybe? This is only a problem with Web Services.
>>
>>TIA,
>>
>>~~Bonnie