SqlCmd : Login timeout expired from localhost

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http://serverfault.com – I've setup the instance SQLEXPRESS via SQL Server 2008 R2 installation, added a security login with all server roles, one called 'sqluser'. The server authentication is SQL Server and Windows Authentication mode. However, when i specify the -S property, login fails. There is no firewall enabled and SQL server even accepts connections from remote hosts. C:\Users\user>sqlcmd -U sqluser -P qwerty -Q "Select * FROM testdb.dbo.testtable" Output: integer ------- 1 2 3 4 (4 rows affected) However when specifying 'localhost' the query fails... Question is Why? C:\ (HowTos)