This may apply to other SQL Server 2005 products but since I haven't not tried them myself, I can't definitely say that this is the case. Anyway, on default SQL Server 2005 Express install it will create one sql server instance named "SQLEXPRESS." For most occasions this should do just fine but in some cases a named/new instance is necessary to partition/compartmentalize the development of an application. Creating a new sql server instance is actually very easy. To create a new instance, do the following: a) Secure a copy of SQL 2005 Express installation media. b) Run setup.exe. c) Accept license agreement. After accepting the agreement, the installation program will perform various other checks like disk space available... etc. d) "Welcome to the Microsoft SQL Server Installation Wizard" just lazily hit on "Next" button. e) In System Configuration Check screen, if the reports are okay then proceed, hit on "Next" button again. f)