After installing Visual Studio LightSwitch Beta 2 I got the following error for every project I started:
Error 67 An error occurred while establishing a connection to SQL Server instance '.\SQLEXPRESS'.
Timeout expired. The timeout period elapsed prior to completion of the operation or the server is not responding. C:\Program Files (x86)\MSBuild\Microsoft\VisualStudio\LightSwitch\v1.0\Microsoft.LightSwitch.targets
The way I have solved it (after a lot of hassle) was to:
1. Uninstall Visual Studio LightSwitch Beta 2
2. Uninstall SQL Express
3. Re-install Visual Studio LightSwitch Beta 2
Let me know if it worked for you as well.