Is this a clean install? Have you tried using a different DB name>? The ConfigurationWizard.log file could tell us more. C:\Program Files\SolarWinds\Orion -> ConfigurationWizard.log
It looks like a permissions issue. Install as local admin and verify that you have SA rights to that DB to be able to create the tables--
more details here...
www.solarwinds.com/.../OrionQuickStart Guide.2.14.htm
Something is not setup correctly on the system. What OS are you evaluating with?
"an not open connection [DBNETLIB][ConnectionOpen (Connect()).]SQL Server does not exist or access denied"- If you are using SQL Express locally the TCP pipe may not be open since this is closed by default. Verify that this is open. Also sometimes the SQL express will not show unless you put in (local)\sql Express name.
So to recap try the (local)\SQLexpress and make sure the TCP/IP port is open and allowing pipes and verify the SA account is being used.