WDM 4.8 Installation Problems

Trying to install WDM 4.8 on a existing server. Server is 2008 R2 64-bit, running as a virtual on Hyper-V. All latest updates and services packs applied.

WDM comes packaged with MS SQL Express 2005 for it's DB. I already have MS SQL Express 2008 installed on this server for another application and would strongly prefer to NOT run both 2008 and 2005. I installed a 2nd instance of MS SQL Express 2008 called WDM. However during install when I attempt to put in the credentials and server, I receiv ethe error "Unable to connect to Database". I am able to connect to the instance using MS SQL 2008 Server Management Studio from a workstation without issue.

I also have an Full MS SQL 2005 server onsite. When I put in the information for that server, the installation takes the info just fine, begins the installation, and then poops itself. The files appear to be created but no DB is created. Of course trying to launch WDM is met with a never ending string of errors.

What am I a missing? Again I would prefer to NOT run both 2008 and 2005 SQL Express on the same server, but the WDM installation doesn't seem to want to cooperate.

Any suggestions?