Recently, I recieved error on my local machine for connecting to SQL Server. I have Windows7 and a freshly installed SQL Server 2005 and a service pack 3 for SQL Server 2005.
The next day when I started my machine I was unable to connect to SQL Server.
I got the following message:
A network-related or instance-specific error occurred while establishing a connection to SQL Server. The server was not found or was not accessible. Verify that the instance name is correct and that SQL Server is configured to allow remote connections.
(provider: TCP Provider, error: 0 - No connection could be made because the target machine actively refused it.)
(Microsoft SQL Server, Error: 10061)For help, click:
hereI performed following quick steps:
1. Go to All Programs -> Microsoft SQL Server 2005 -> Configuration Tools -> SQL Server Configuration Manager -> SQL Server Services, and check if SQL Server service status is “Running”.

(If it is Stopped, Right Click and Select Start.)
I found it running.
2. Go to All Programs -> Microsoft SQL Server 2005 -> Configuration Tools -> SQL Server Configuration Manager -> SQL Server 2005 Network Configuration -> Protocols for MSSQLServer.
I found TCP/IP was disabled. (Also the error provider was TCP/IP Provider).
I right clicked and made it Enable.

Later on I found interesting checklist from one of my favourite
blog on this topic which can be helpful for a quick reference.