Cannot connect to database using VB 2005 Express

Hello,

I am developing a windows application in Vb 2005 Express and Sql Server express
I have created a database in sqlserver called "mydb"
I want to connect the desktop VB application to this and create two screens, say employees and projects
This seems to be very non-intuitive

I need a design time connection as I am using DataGridViews, in my application

My screens are not updatting data in the main database. VB keeps asking me, if i want to create a local file for the database. Whether i create a local file or not , the data does not get updated in either the local or the main database.

I just want a simple connection, nothing fancy.

Please help me get through this problem,
Thanks and regards
Nanda Ramaswamy