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Hyper-v and sql server connections for web apps

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http://serverfault.com – I have a physical machine running win8, and two VMs in hyper-v client: 1 web server, 1 sql server. The web server works fantastic. The sql is the one that is giving me the problem. I can connect to it with server explorer in visual studio or management studio just fine, and it's blazing fast. The problem happens when I use the same connection string I am using in visual studio server explorer in the web.config for an app. data source=VMSQL1;initial catalog=OtherShell;persist security info=True;user id=OtherShell;password=****;network library=dbmssocn;MultipleActiveResultSets=True;App=Entity (HowTos)