SQL Error 40 means that during the Configuration Wizard that it was not able to connect to the SQL Server. Please rerun the Configuration Wizard and under the SQL Server connection settings make sure to use the IP-or-Hostname\InstanceName if the Instance name is not SQLExpress or MSSQLServer.
If you continue to see the issue I would also recommend that you go onto the SQL Server and go into Start> Programs> Microsoft SQL Server (version)> Configuration Tools> SQL Server Configuration Manager. You will need to expand out all options and select any field that has Protocols on the left side. Make sure TCP/IP is and Named Pipes are enabled. If you make any changes you can select the SQL Server Services on the left to see all services, and you will need to restart the SQL Server (InstanceName) service for the protocol settings to be applied, then rerun the Configuration Wizard.
