"SQL Server does not exist or access denied" when running Reporting tool shortcut on Windows 2008 (SL2374)

When attempting to use the Reporting tool from a shortcut on a Windows 2008 Server, the report times out with an error: 
"SQL Server does not exist or access denied".

The Windows Server 2008 Windows Firewall may be enabled and requires exceptions to allow communication through it.

To fix this problem either turn off the firewall or add the exceptions so the Desktop Authority services will be able to communicate with the SQL Server:

Disable the firewall:

1. Log onto Windows Server 2008 where Desktop Authority is installed.
2. Click Start | Control Panel | Windows Firewall.
3. Click “Change Settings”.
4. To disable the Windows Firewall, click “Off".

Add firewall exceptions:

1. Open the "Windows Firewall with Advanced Security" console.
2. Right click on "Inbound rules" and select "New Rule..."
3. Select “Program” and browse to the SQLserver process.  This path can be found easily by looking at the "path to executable" in the properties of the SQL Server instance in Windows Services applet.
4. Select Allow the connection.
5. Click on the “OK” button when done.
6. Select Domain, private and public.
7. Select a name.
8. Restart Desktop Authority Manager from the shortcut.
9. Click Finish.
10. Restart Desktop Authority Manager from the shortcut.