One of the most requested features on Windows Web Server 2008 was SQL Server support for local web applications. When SQL Server 2008 ships later this year, it will automatically install on Windows Web Server 2008. For anyone who wants to use SQL Server 2005, you can do that today but you will first need to install a patch
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http://blogs.iis.net/bills/archive/2008/04/15/windows-web-server-2008-and-sql-server-2005.aspx