1) I am now using an SQL log In rather than windows. Is this the distinction you were making when you refered to TCP/IP connection versus Named pipes ?
Nope, connecting through Named Pipes means that a the application connects to SQL Server through memory, while a TCP/IP connection connects accross the network stack. TCP/IP communication is disabled by default on SQL Server Express; you have to explicitly turn it on or you can only connect to the SQL Server from the machine where it's installed.
2) This might be a silly question but I thought that it was better to use Windows authentication or is this only for forms access.
With StrataFrame, there's no advantage either way. But, with an SF WebForms application, the connection is shared across the entire AppDomain running the ASPX pages, meaning the IIS Hosting process shares the connection for all users that connect to the server. If you use Windows authentication in a SF WebForms environment, you won't be able to consistently control the user under which the connections are opened since the user's credentials are not passed through to the connection. So, you'll have to implement security in some other way besides using SQL Server security only.
3) In the mean while I have a similar set up on my laptop where I am using XP Professional. After the problem I had I went downstairs used my Laptop and realised it was probably on my laptop that I had seen the customer search working. I checked the global.asax file and noted I had not set up a connection string yet it appeared to be working ok. I am sure I read somewhere that the controls can use a default value for the connection string. Is this probably the case ? where did I set this default ?
The default is set through the global.asax file. You specify the connection string when the DataBasics.DataSources.Add(new SqlDataSourceItem("", "conn string")); is called. That connection string there is the one used by the data source.
4) In both my set-ups the Search Customer form now works ok. But, when I perform an edit of the data and try and save the edit I get the error below. I noted in the design view of the form WebBindingSource.aspx the grid view has an error
"There was an error rendering the control".
"The data source does not support server-side data paging.
I'm not sure they are related ... can you suggest what I'm doing wrong ?
The WebBindingSource always displays that error at design-time, although the control itself does support paging. So, the error you are receiving at runtime is independent of the error you're receiving at design-time (which can be ignored). What's the error you're getting at runtime?