Can anybody give me any pointers on getting SQL Everywhere working with MM.NET?

I get an error when running the Business Layer Generator. When I press the "Get Data" button I get a .Net SQLClient Data Provider exception that says:

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)