Error from 1st time clicking on the 'Next' button:
Could not connect to server MyServer\MyDatabaseInstance or login failed.
Incorrect syntax near 's'.Unclosed quotation mark after the character string ')'.
Error from 2nd time clicking on the 'Next' button:
A transport-level error has occurred when sending the request to the server. (provider: Shared Memory Provider, error: 0 - The handle is invalid.)
This seems to be happening if the SA account is disabled or if the authentication is set to windows authentication only
Enable the SA account in SQL and then use that to install the Notification Server
Once the server is installed go to the console > settings > notification server settings > database settings
The change the Database credentials to a SQL account or to a windows login with DBO access to the database
Windows SQL Server 2005/2005 Express
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This will clear the history and restart the chat.