Thank you so much. When I installed the MSDE there was so much information in the setup instructions that I did not really understand everything and missed this. So now I uninstalled MSDE and reinstalled with that option and it worked fine. Note that a simple uninstall/reinstall did not work. I ended up manually deleteing the database files and also the registry settings before it would accept a reinstall.

Hi Eddie,

Your welcome.
By the way, to uninstall MSDE successfully you need to stop the SQL agent and other related services before you uninstall it from "Add/Remove Program".

Rene