...in staring the process for the user instance. The connection will be closed.

Το συγκεκριμένο μηνυμα εμφανιζεται οταν προσπαθω να προσθεσω τοπικη sql βαση δεδομενων σε vs project.

Any suggestions?

Ευχαριστώ για τον χρόνο σας. 

Δεν ρίχνεις μια ματιά στο error log του Sql Express (αυτόν χρησιμοποιείς, έτσι;)

Λογικά θα το βρεις εδώ
C:\Documents and Settings\<user name>\Local Settings\Application Data\Microsoft\Microsoft SQL Server Data\SQLEXPRESS (για XP)
η εδώ
C:\Users\<user name>\AppData\Local\Microsoft\Microsoft SQL Server Data\SQLEXPRESS (για Vista)

Τι θέλει να πεί ο ποιητής;

2007-10-28 22:43:54.23 Server      Registry startup parameters:
2007-10-28 22:43:54.23 Server        -d C:\Program Files\Microsoft SQL Server\MSSQL.1\MSSQL\DATA\master.mdf
2007-10-28 22:43:54.23 Server        -e C:\Program Files\Microsoft SQL Server\MSSQL.1\MSSQL\LOG\ERRORLOG
2007-10-28 22:43:54.23 Server        -l C:\Program Files\Microsoft SQL Server\MSSQL.1\MSSQL\DATA\mastlog.ldf
2007-10-28 22:43:54.23 Server      Command Line Startup Parameters:
2007-10-28 22:43:54.23 Server        -d C:\Documents and Settings\gipap\Local Settings\Application Data\Microsoft\Microsoft SQL Server Data\SQLEXPRESS\master.mdf
2007-10-28 22:43:54.23 Server        -l C:\Documents and Settings\gipap\Local Settings\Application Data\Microsoft\Microsoft SQL Server Data\SQLEXPRESS\mastlog.ldf
2007-10-28 22:43:54.23 Server        -e C:\Documents and Settings\gipap\Local Settings\Application Data\Microsoft\Microsoft SQL Server Data\SQLEXPRESS\error.log
2007-10-28 22:43:54.23 Server        -c
2007-10-28 22:43:54.23 Server        -K
2007-10-28 22:43:54.23 Server        -S SQLEXPRESS
2007-10-28 22:43:54.23 Server        -s CD2391D2-16D3-40
2007-10-28 22:43:54.23 Server        -w 60
2007-10-28 22:43:54.23 Server        -T 1617
2007-10-28 22:43:54.24 Server      SQL Server is starting at normal priority base (=7). This is an informational message only. No user action is required.
2007-10-28 22:43:54.24 Server      Detected 1 CPUs. This is an informational message; no user action is required.
2007-10-28 22:43:54.85 Server      Using dynamic lock allocation.  Initial allocation of 2500 Lock blocks and 5000 Lock Owner blocks per node.  This is an informational message only.  No user action is required.
2007-10-28 22:43:54.92 Server      Database Mirroring Transport is disabled in the endpoint configuration.
2007-10-28 22:43:54.92 spid5s      Starting up database 'master'.
2007-10-28 22:43:55.09 spid5s      Recovery is writing a checkpoint in database 'master' (1). This is an informational message only. No user action is required.
2007-10-28 22:43:55.28 spid5s      SQL Trace ID 1 was started by login "sa".
2007-10-28 22:43:55.28 spid5s      Starting up database 'mssqlsystemresource'.
2007-10-28 22:43:55.29 spid5s      Error: 17207, Severity: 16, State: 1.
2007-10-28 22:43:55.29 spid5s      FCB::Open: Operating system error 2(error not found) occurred while creating or opening file 'C:\Program Files\Microsoft SQL Server\MSSQL.1\MSSQL\Template Data\mssqlsystemresource.mdf'. Diagnose and correct the operating system error, and retry the operation.
2007-10-28 22:43:55.29 spid5s      Error: 17204, Severity: 16, State: 1.
2007-10-28 22:43:55.29 spid5s      FCB::Open failed: Could not open file C:\Program Files\Microsoft SQL Server\MSSQL.1\MSSQL\Template Data\mssqlsystemresource.mdf for file number 1.  OS error: 2(error not found).
2007-10-28 22:43:55.29 spid5s      Error: 5120, Severity: 16, State: 101.
2007-10-28 22:43:55.29 spid5s      Unable to open the physical file "C:\Program Files\Microsoft SQL Server\MSSQL.1\MSSQL\Template Data\mssqlsystemresource.mdf". Operating system error 2: "2(error not found)".
2007-10-28 22:43:55.32 spid5s      Error: 945, Severity: 14, State: 2.
2007-10-28 22:43:55.32 spid5s      Database 'mssqlsystemresource' cannot be opened due to inaccessible files or insufficient memory or disk space.  See the SQL Server errorlog for details.
2007-10-28 22:43:55.32 spid5s      SQL Trace was stopped due to server shutdown. Trace ID = '1'. This is an informational message only; no user action is required.

Το πρόβλημα πιθανότατα ξεκινάει από εδώ...

 FCB::Open: Operating system error 2(error not found) occurred while creating or opening file 'C:\Program Files\Microsoft SQL Server\MSSQL.1\MSSQL\Template Data\mssqlsystemresource.mdf'. Diagnose and correct the operating system error, and retry the operation.

Για δες στο path που λέει, υπάρχει το αρχείο; Με ένα πρόχειρο γκούγκλισμα βρήκα αυτό, δες μήπως σε βοηθήσει. Στο event log των Windows βλέπεις τίποτα περίεργο για εκείνη την ώρα/μέρα;;