I am having the same issue as Ian mentioned previously. I can connect with telnet via localhost. It does connect and hang, as you specified. In tcpview I can see a connection made for sqlserver.exe when I telnet in. But I still cannot get SQL to connect. When connecting via sql (eg. osql) tcpview shows no actions.
Joseph Spenner wrote:
After you build the tunnel, try this. Open a command
window, and:
telnet localhost 1433
Does it "connect" you to some tcp connection and hang
there?