Need Server Setup Help

Hello everyone, so I'm new around here, but have been poking in and out to see what kind of developments have been going on for the private servers so finally I decided to give this a go myself.

So the first thing I did was grab the server files here: [Only registered and activated users can see links. Click Here To Register...]

I downloaded MSSQL 2012 Express and then proceeded to follow the tutorial for setting up my server here: [Only registered and activated users can see links. Click Here To Register...]

However, upon running 1.bat it pushes up the dialog for a brief moment and then closes, 2.bat then states that it cannot connect to MMC. Here is the error messages pushed by the log:

Code:

LV-00,14:59:27,[CEL::CDBConnection::OpenDB]-[112]  
Open=Provider = SQLOLEDB.1; 
Data Source=PHANTOM139LTP\SQLEXPRESS; 
Initial Catalog=DR2_SiteConfig; 
User Id=sa; 
Password=123456; 
Packet Size = 16384; 
Use Procedure for Prepare = 1; 
Auto Translate = True Failed=0x80040E4D

LV-07,14:59:27,
==================== Server Initialize Start ====================

LV-07,14:59:27,
Product Version : 0.9.29.6
LV-07,
14:59:27,
File Version : 0,1,1,0
LV-07,14:59:27,
Protocol Version : 10.04.06.1

LV-01,14:59:27,
-=-=-=-=-=-  ASSERT_LOG  -=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=

LV-01,14:59:27,[OnRegist]-[17] OnRegist Failed Type = 3
LV-01,14:59:27,
-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=

It seems like this is a common occurrence for people, so if someone would like to explain what's going on here and how to fix this problem, that would be great. I'd love to be able to get my own P.Server up and running to mess around with it for a while.

Something I did note inside the database was the user reference was dbo, even though the username itself was sa, does this have any effect on my configuration or what?

Anyways, any help would be great.
Thanks!