hi Terry that's cause isn't the ASP.NET account that is accessing the SQL Server machine but the network service account, ASP.NET account is only used on Windows 2000 and XP, Windows 2003 uses application pools, and by default the user that runs the application pool is NETWORK_SERVICE.
There are 2 things you can do as matter of fact 3 the easies way will be just change the user on the application poll that your ASP.NET app is running to a user account that have access on SQL server.

>Thanks for your input. Unfortunately I'm still having problems. I'm thinking this is more related to the permissions on the Server than authentication to the SQL.