Can I Connect To SQLExpress Instance Using (local)

Hello,

I am using the following connection string to connect to SQL Server 2005 Express Edition installed on my local PC.
string sqlstr = "Server=(local);Database=MyDB;User ID=sa;Password=sa;Trusted_Connection=False";

And it gives me the following error. The string works fine in computer with SQL Server 2000 instance but fails with 2005. The string also fails for "Server = localhost".
However the string works very fine if I use the name of Server 2005 i.e ./SQLExpress

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Cannot connect to (local).

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An error has occurred while establishing a connection to the server.  When connecting to SQL Server 2005, this failure may be caused by the fact that under the default settings SQL Server does not allow remote connections. (provider: Named Pipes Provider, error: 40 - Could not open a connection to SQL Server) (.Net SqlClient Data Provider)

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Error Number: 2
Severity: 20
State: 0


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Now the main problem is that, of course I could use a named instance, but since I am embedding the Connection String in a dll file so that any user can use it to connect it to the local instance of the SQL Server 2005 installed in his/her computer, I need to use "server = localhost". Doesn't SQL 2005 support this. If yes, where could i find option to enable it?

I have enabled every option available in surface area configuration for SQL Server 2005, but nothing seems to help out. I even use local as well as remote connections using both TCP/IP and named pipes.
Can nyone help me out?