Can I use MDSE instead of SQL 2000 ??

Hey guru's out there I'm attempting to run a test box with mdse instead of sql 2000 with the commerce kit..i get the following error message...when attempting to access iis: The service is installed and running on xp...

HELP

Server Error in '/CommerceVBSDK' Application.

SQL Server does not exist or access denied.
Description: An unhandled exception occurred during the execution of the current web request. Please review the stack trace for more information about the error and where it originated in the code.

Exception Details: System.Data.SqlClient.SqlException: SQL Server does not exist or access denied.

Source Error:

Line 28: Dim products As ASPNET.StarterKit.Commerce.ProductsDB = New ASPNET.StarterKit.Commerce.ProductsDB()
Line 29:
Line 30: MyList.DataSource = products.GetProductCategories()
Line 31: MyList.DataBind()
Line 32:

Source File: C:\Program Files\ASP.NET Starter Kits\ASP.NET Commerce (VBSDK)\CommerceVBSDK\_Menu.ascx Line: 30

Stack Trace:

[SqlException: SQL Server does not exist or access denied.]
System.Data.SqlClient.ConnectionPool.GetConnection(Boolean& isInTransaction) +474
System.Data.SqlClient.SqlConnectionPoolManager.GetPooledConnection(SqlConnectionString options, Boolean& isInTransaction) +372
System.Data.SqlClient.SqlConnection.Open() +384
ASPNET.StarterKit.Commerce.ProductsDB.GetProductCategories()
ASP._Menu_ascx.Page_Load(Object sender, EventArgs e) in C:\Program Files\ASP.NET Starter Kits\ASP.NET Commerce (VBSDK)\CommerceVBSDK\_Menu.ascx:30
System.Web.UI.Control.OnLoad(EventArgs e) +67
System.Web.UI.Control.LoadRecursive() +35
System.Web.UI.Control.LoadRecursive() +98
System.Web.UI.Control.LoadRecursive() +98
System.Web.UI.Page.ProcessRequestMain() +731Try creating a blank Database with OSQL and give ASP.NET account DBO permissions in the Database before installing the Commerce Starter kit. Hope this thelps.

http://msdn.microsoft.com/library/default.asp?url=/library/en-us/dnmsde2kwrk/html/msde2000webapp.asp

Kind regards,
Gift Peddie