XP in Workgroup- ADO won't connect to MSDE

[Norby mahoney]

With 2 XP-pro machines in a common workgroup, the following code fails:

pDBConnection.CreateInstance( __uuidof( ADODB::Connection );

CString sConnect;
sConnect.Format(_T("Provider=sqloledb;Data Source=%s;Initial Catalog='%s';uid='%s';pwd='%s';"), m_server, m_project, m_user, m_password);
_bstr_t connectString = sConnect;
m_pDBConnection->Open(connectString, "", "", 0);

I'm simply trying to connect to an MSDE Server on 1 machine from another.