Connecting Visual Basic to local database - database

Question

I've got a question regarding Visual Basic's local database. So far I've managed to: 1. Create a Local Database, named it Database1 2. Create a table with values (username, password, year/section, secretquestion, secretanswer) 3. Create a dataset in form1(to get form2's entries) 4. Create a registration form in form 2( 5 labels/textboxes to get username,password,year/section,secretquestion,secretanswer)
Here's my current code for Form2:
Public Class Form2
Private Sub Button1_Click(ByVal sender As System.Object, ByVal e As System.EventArgs) Handles Button1.Click
Dim sqlConnection1 As New System.Data.SqlClient.SqlConnection("Data Source=C:\Users\Bounty Hounds\AppData\Local\Temporary Projects\WindowsApplication1\Database1.sdf")
Dim cmd As New System.Data.SqlClient.SqlCommand
cmd.CommandType = System.Data.CommandType.Text
cmd.CommandText = "INSERT Username (user) Password (pass) Year/Section (yns) SecretQuestion (sq) SecretAnswer (sa)"
cmd.Connection = sqlConnection1
sqlConnection1.Open()
cmd.ExecuteNonQuery()
sqlConnection1.Close()
End Sub
Private Sub TextBox1_TextChanged(ByVal sender As System.Object, ByVal e As System.EventArgs) Handles TextBox1.TextChanged
Dim user As String
user = TextBox1.Text
End Sub
Private Sub TextBox2_TextChanged(ByVal sender As System.Object, ByVal e As System.EventArgs) Handles TextBox2.TextChanged
Dim pass As String
pass = TextBox2.Text
End Sub
Private Sub TextBox3_TextChanged(ByVal sender As System.Object, ByVal e As System.EventArgs) Handles TextBox3.TextChanged
Dim yns As String
yns = TextBox3.Text
End Sub
Private Sub TextBox4_TextChanged(ByVal sender As System.Object, ByVal e As System.EventArgs) Handles TextBox4.TextChanged
Dim sq As String
sq = TextBox4.Text
End Sub
Private Sub TextBox5_TextChanged(ByVal sender As System.Object, ByVal e As System.EventArgs) Handles TextBox5.TextChanged
Dim sa As String
sa = TextBox5.Text
End Sub
End Class
But as soon as I click the register button it gives me an error and points at the sqlConnection1.Open() line, the error is: "A network-related or instance-specific error occurred while establishing a connection to SQL Server. The server was not found or was not accessible. Verify that the instance name is correct and that SQL Server is configured to allow remote connections."
In the Database Explorer I see my Database1.sdf with an X on its icon(the small yellow cylinder) and checked that its state is closed, so I tried opening it by right clicking it, then modify connection, placed the Database1.sdf path in the Database, inputted my password and pressed ok. At that point I see my Database1.sdf state go "Open" but when I ran my application the state went to "Closed" again (btw I see this state thing by right clicking my Database1.sdf in the Solution Explorer).
This text below has little to no connection with my code above and I just wanted your opinions on what is the best approach to the software I want to create so if you only want to help me on my code which I greatly appreaciate, you can stop reading the paragraphs below but if you do take time to consider reading it, It would mean alot to me. THANKS
The connection of a visual basic form and a database is the first step of what I really want to do, what my main goal is a File Storage system between two PCs which I'll increase once I figured out those 2 PCs.
To reach that goal I tried to divide each problems so I can address them accordingly and eventually finishing the entire software.
Establish a connection between 2 PCs (which I've done by setting PC2's dns server with PC1's ip address).
Connect a visual basic form (which in my case is a registration form) with a database for storing user accounts.
Make every registration create a folder for the certain users that registered. The folders created will be the storage of their files (this idea is really vague atm as I don't know how will I do this, AND VERY IMPORTANT PART IS ONLY THE REGISTERED USERS FROM THE DATABASE ONLY HAVE ACCESS TO THE FOLDERS THEY OWN(sorry i'm not shouting, just noting this as I feel this is the hardest part to do)
Implement a disk quota on the folders to limit sizes.
Create a Login system for PC2 to connect to the database of PC1 (Database should verify this and give an error if the infos are incorrect).
Create a Save/Load button for PC2 (I want PC2 to save its myDocuments Folder on PC1's Folder for Storage Files by using the My.Computer.FileSystem.CopyDirectory command. Then load will copy the PC1's Folder and load it into PC2's MyDocuments Folder.
Lastly and the biggest question is that are all these possible to do with Visual Basic? I've tried it with Windows Active Directory using roaming user profiles but I really want to develop my own software.
EDIT:
#Jimmy Smith
Thanks for replying, I've decided to create another database named CCS and my new code for form2 is:
Dim conn As New System.Data.SqlServerCe.SqlCeConnection()
Dim cmd As New System.Data.SqlClient.SqlCommand
conn.ConnectionString = _
"Persist Security Info = False; Data Source = 'C:\Users\Bounty Hounds\Documents\Visual Studio 2010\Projects\WindowsApplication2\WindowsApplication2\CCS.sdf';" & _
"Password = joshua8; File Mode = 'shared read'; "
conn.Open()
cmd.CommandType = System.Data.CommandType.Text
cmd.CommandText = "INSERT Username (user) Password (pass) Year/Section (yns) SecretQuestion (sq) SecretAnswer (sa)"
However, It generates a new error:
There is a file sharing violation. A different process might be using the file. [ C:\Users\Bounty Hounds\Documents\Visual Studio 2010\Projects\WindowsApplication2\WindowsApplication2\CCS.sdf ]

Answer 1

You can't connect to SDF files direct without using the Compact Edition library. Unfortunately, it's not installed by default as Microsoft seems to be phasing it out.
Use System.Data.SqlserverCe.SqlCeConnection in place of System.Data.SqlClient.SqlConnection
http://visualstudiogallery.msdn.microsoft.com/0e313dfd-be80-4afb-b5e9-6e74d369f7a1
http://msdn.microsoft.com/en-us/library/system.data.sqlserverce.sqlceconnection(v=vs.100).aspx