If you are still unable to connect resulting in the same error message, it could be that the server is unable to resolve using named pipes or TCP/IP. Try switching from one to the other in the client configuration. These options can be found in the "Client Configuration" button on the 2nd page of the wizard. If this does not help the first time then try one of the other suggested solutions, and try toggling between TCP/IP and Named Pipes again.
In the .\deployment server\techsup directory is a utility called 'DSDBsecurity'. Double click on this executable, authenticate and select 'Set Role Permissions' This utility gives all users who are member of the Public group within SQL rights to open up and use the console.
Make sure the user is a member of the public group on the SQL server. Run DSDBsecurity.
Check any firewalls between the machine running the Altiris eXpress Server service and the machine opening the console. Firewalls and proxy servers can be the cause of some Remote Consoles not opening while other Remote Consoles and the Main DS console CAN be opened, If the Remote Console is going through a firewall then go back into the "Client Configuration" settings in the Altiris eXpress Database ODBC System DSN (as described in Solution A). Uncheck the "Dynamically Determine Port" and specify a specific port for the console to communicate on.
There are several reasons that SQL could fail. Whenever SQL does fail it is a good idea to first check the windows event viewer logs and the SQL error logs. Often times SQL will fail because of a transaction log growing too large, this is largely due to the high number of transactions Deployment Server has with the database. To prevent this by set the recovery model on the eXpress database to simple or add a maintenance plan to backup the eXpress database nightly. For more information search for "database recommendations" in the Altiris Support Knowledge base and review the SQL user guide.