SQL Server Configuration to connect with IIS on Azure VM - Repost - open to bidding

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Project Description:
I think the title describes the problem pretty good.

Here is the error I'm getting: A network-related or instance-specific error occurred while establishing a connection to SQL Server. The server was not found or was not accessible. Verify that the instance name is correct and that SQL Server is configured to allow remote connections. (provider: SQL Network Interfaces, error: 50 - Local Database Runtime error occurred. Cannot create an automatic instance. See the Windows Application event log for error details.

I have a visual studio set up on the VM and can run the site fine from the debugger, so I think that implies that SQL Server (Express) is working. I can display simple web pages from IIS, so I think that is working Ok. I just need some help with the configuration.

Skills required:
.NET
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