Problem in Connecting Database. error " SQL Server does not allow remote connections."

Question

Hello all,
       I have created one database application, it works fine on my Pc, but when i insatalll it on another.. it gives me following databse error. I include the .mdf and log file in setup.. Can anybody suggest how to solve this?

"    An error has occurred while establishing a connection to the server. When connecting to SQL Server 2005, this failure may be caused by the fact that under the default settings SQL Server does not allow remote connections."