Upsizing Wizard / SQL Server Version

The simple answer is that Microsoft wrote all of those programs so why would you assume they should work correctly. Ok I digres, but I run into stupid MS errors like this all day long.

Some things to check:
Is the File and printer services port allowed through the SP2 firewall?
Can you log into SQL Server by other means?
Have you done all of the SQL Server updates?

One thing to note:
The Upsizing Wizard is an iffy proposition at best. You will not like the results, although they may be usable. It will be clunky, cluttered, and slow. You would be better off rebuilding the database in SQL by hand. It will make it much easier to modify in the future. You have been Warned.

This probably isn't your problem:
http://support.microsoft.com/?id=838594

Here is a HowTo:
http://support.microsoft.com/kb/330468/

http://msdn.microsoft.com/library/default.asp?url=/library/en-us/dnproasp/html/upsizingtosqlserver.asp

http://msdn.microsoft.com/library/default.asp?url=/library/en-us/odeopg/html/deovrconvertingaccessdatabasewithupsizingwizard.asp

Check these out:
http://support.microsoft.com/default.aspx?scid=kb;en-us;839269

http://support.microsoft.com/default.aspx?scid=kb;en-us;888228

http://support.microsoft.com/default.aspx?scid=kb;en-us;275118

http://support.microsoft.com/default.aspx?scid=kb;en-us;884012

Here is a Trouble Shooting Guide:
http://office.microsoft.com/en-us/assistance/HP030894261033.aspx

Hope this helps.