Some are reporting that the SUS database needs to be flipped from single user to multi user, another indicated that the named pipes needed to be reset:
1. Open the Sql Server Configuration Manager (Start > Programs > Microsoft SQL Server 2008 R2 > Configuration Tools)
2. SQL Server Network Configuration > Protocols for MICROSOFT##SSEE
3. Open Properties for Named Pipes and set Enabled to Yes.
Remember to open up the SUS database follow the following post: