Hi Tanio,
As far as I know, SQL Server 2005 Express is one of the components of Visual Studio 2008 (at least standard version). However, Visual Studio 2008 Express Editions do not contain SQL Server 2005 Express, we need to download and install the SQL Server 2005 Express after we install the Visual Studio 2008 Express Editions.
Therefore, could you please tell us what the version of the Visual Studio 2008 are you using now? If it is at least the standard version, you can consider reinstalling the product. Please remember to install all the necessary components you want or you can select default installation of Visual Studio 2008 during the installation process.
Besides, Visual Studio 2008 is absolutely compatable to SQL Server 2005.
If you have any questions, please be free to ask me.
Best Regards,
Lingzhi
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http://forums.msdn.microsoft.com/en-US/csharpide/thread/8e9ed0d7-11ff-402a-8489-9b5f05eeb706
http://forums.msdn.microsoft.com/en-US/vssetup/thread/60424309-bd78-4ca2-b618-03c4a16123b6