Did you grant db owner rights to your uid?

Anyway, "SQL Server does not exist or access denied" means it's a problem of uid, pass, servername or whatever, but not of Cute chat.

Try the following:

Create a test.udl file on your desktop. Double-click it. Go to Provider tab. Select "Microsoft OLEDB Provider for SQL Server", then click "Next". Check "Allow saving password". Play filling the fields until you get "Test connection successful" when clicking "Test connection". Then click OK. Then open test.udl with notepad and you will see everything you need.

Hope it will help.