I kind of got SharePoint to work& made it stand alone to avoid messing with the SQL connectivity,&.
Anyway what happened was created another instance of ssp and that messed up everything&. Tried editing multiple config files, that didnt help made it worse&. So last resort was start from scratch&..
So what I did was deleted that one and used the default ssp&. I think since it is an embedded sql it is not capable of having multiple instances&