IIS Connection Problem To Local SQL 2000 Server

Hi,

I am running windows 2003 server with SQL Server 2000 SP4, both running on the same machine in our development environment. We are using anonymous authentication and the website is running in an application pool which uses a user account with access to the SQL server databases.

In our live environment, IIS and SQL are on different physical servers and we use a connection string containing a fully qualified domain name for the server name to connect in standard ASP pages (not .NET):

provider=sqloledb;Server=sqlserver.internal.companyname.net;Initial Catalog=<database name>;Trusted_Connection=yes


This works fine, but in development where both are on the same machine, I want to still use the same connection string, and point sqlserver.internal.companyname.net to my local computer, using a hosts file.

If I do this, I get the error "Login failed for user '(null)'. Reason: Not associated with a trusted SQL Server connection.".
If I use localhost, all is fine. If I use the machine name, all is fine. If on the same server in development I point sqlserver.internal.companyname.net to another server with SQL on it, all works fine.

But, I don't want to have to have different code in development and production and I don't see why I have to! Exactly the same setup worked on Windows 2000 advanced server, but now I am running 2003, it does not. Any help would be gratefully accepted.

Thanks,

Peter