My situation
empty Instance Name in SQL Server Management Studio > select your database engine > Right Mouse Button > Properties (Server Properties) > Link View connection properties > Product > Instance Name is empty
Data Source=.\SQLEXPRESS did not work => use localhost in web.config (see below)
Solution: in web.config
xxxxxx = name of my database without .mdf yyyyyy = name of my database in VS2012 database explorer
You can force the use of TCP instead of shared memory, either by prefixing tcp: to the server name in the connection string, or by using localhost.