Connecting a VS Studio C# program to a local SQL Server database

I want to connect this program to a copy of the database on my local machine. I have downloaded SQL Server Express 2005 Management Studio and have made a copy of the database and restored it to my local machine.

Please would you advise on how I can connect this to the local database. Am I correct in that I need to change some values in the app.config file which is as follows:

<?xml version="1.0" encoding="utf-8" ?>
<configuration>
<configSections>
<sectionGroup name="userSettings" type="System.Configuration.UserSettingsGroup, System, Version=2.0.0.0, Culture=neutral, PublicKeyToken=b77a5c561934e089" >
<section name="TestProject.Properties.Settings" type="System.Configuration.ClientSettingsSection, System, Version=2.0.0.0, Culture=neutral, PublicKeyToken=b77a5c561934e089" allowExeDefinition="MachineToLocalUser" requirePermission="false" />
</sectionGroup>
<sectionGroup name="applicationSettings" type="System.Configuration.ApplicationSettingsGroup, System, Version=2.0.0.0, Culture=neutral, PublicKeyToken=b77a5c561934e089" >
<section name="TestProject.Properties.Settings" type="System.Configuration.ClientSettingsSection, System, Version=2.0.0.0, Culture=neutral, PublicKeyToken=b77a5c561934e089" requirePermission="false" />
</sectionGroup>
</configSections>
<connectionStrings>
<add name="TestProject.Properties.Settings.DBConnection"
connectionString="Data Source=ServerName;Initial Catalog=FinancialReporting;Persist Security Info=True;User ID=TestId;Password=TestPassword" />
</connectionStrings>
<userSettings>
<TestProject.Properties.Settings>
<setting name="LastExtract" serializeAs="String">
<value>2010-08-10</value>
</setting>
<setting name="PollingEnabled" serializeAs="String">
<value>True</value>
</setting>
<setting name="PollingInterval" serializeAs="String">
<value>1</value>
</setting>
<setting name="ShowMessage" serializeAs="String">
<value>False</value>
</setting>
</TestProject.Properties.Settings>
</userSettings>
<applicationSettings>
<TestProject.Properties.Settings>
<setting name="Userid" serializeAs="String">
<value>TestId</value>
</setting>
<setting name="password" serializeAs="String">
<value>TestPassword</value>
</setting>
<setting name="Server" serializeAs="String">
<value>ServerName</value>
</setting>
</TestProject.Properties.Settings>
</applicationSettings>
</configuration>

I am using .NET 3.0.