I have two server running SQL 2005 – both are configured to support remote connection via named pipe and TCP/IP. However they can’t connect to one another with either osql.exe or the mgmt studio. Any idea?

Check out http://blogs.msdn.com/sql_protocols/

Message 10: [SQL Native Client]Unable to complete login process due to delay in opening server connection.
Reasons could be:
- There are spaces after Instance name in the connection string eg. osql /S”\Instance “ /E, to resolve this, you need to remove the trailing space.
- Connect through 127.0.01.
- Remote connection and WINS was disabled on the client machine and you connect using FQDN as server name. To resolve this, one way, turn on “File and Printer sharing” and explicitly use name pipe protocol. Another is enlarge the connect timeout to around 30 seconds.