I found out what the issue is. When you install MSDE you can put parameters in the setup. Well the new service pack 3a comes with the network protocols disabled. So even when I told SQL to load them after I set it up, there must be another parameter set up at install that disables them no matter what. So if you were like me and were tearing your hair out. In order for you to use MSDE with ColdFusion succesfully you must run this parameter.

setup SAPWD="AStrongSAPwd" SECURITYMODE=SQL DISABLENETWORKPROTOCOLS=0

Bob Everland
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