Topic: MS Sql Server settings

I'm having an issue making the MS A SQL Server plug-in connect to my instance of the MSDE. When connecting to the MSDE, you need to specify [machine name] \\[instance name] in the connection, assuming that you have not installed the the MSDE as the default instance on the local client. When I specify localhost as the instance of the server, sql does not recognize localhost \\instancename as a valid server, neither does it recognize \\instancename as a valid server. It needs the machine name as a part of the instance name to establish a connection. My question is, is there a way to specify this in the MS Sql Server plug-in?
Any help will be apprecited.
I did not find the right solution from the Internet.
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Thank you.