I believe that form relies on the SQL Server Agent to be running to find the SQL servers instance. Also I think you can type in your SQL Server instance name there too.
So, some things that can kill the process of broadcasting to the network are:
1) SQL Server Browse services not running, so therefore, won't respond
2) Firewalls (on your own machine, too) that block the broadcast requests
3) Servers not on your local network (IP subnet) will never be found since an IP broadcast doesn't get routed