Cannot connect to database on DiscountASP through the website.

Hi,
I just got my website up and running on discountasp.net. I have been running this same websitefor over a year with the same code on another server without any problems.

Currently, if I try to connect to the database server on discountasp, using the connection string values provided, it does not connect.
Ultimatley it throws a connection string not initialized error, which looks like a coding error, but that is becuase it it unable to get/authorize the connection.

The connection string is specified in the web.config file.
"Data Source=tcp:sql2k505.discountasp.net;Initial Catalog=SQL2005_585176_vascular;User ID=xxx;Password=xxxx;"

The strange thing is, if I use the website from my local machine (not the hosted one), and connect to the discountasp database, it works fine, but it does not connect from the hosted web site, even though the web.config parameters are the same.

I would appreciate any help on this.
Thanks
(Maybe it needs some other permissions, or more connections allowed or something I am not thinking about)