Download SQL Server 2008 Express

First, you will need to download SQL Server 2008 Express. You have two options to download. You can either download SQL Server 2008 Express without any management tools (61 MB) from http://go.microsoft.com/?linkid=9314315 or you can download SQL Server 2008 Express with management tools (219 MB) from http://go.microsoft.com/?linkid=9394725
I recommend installing "SQL Server 2008 Express with Tools", it is worth the extra 150 MB to be able to troubleshoot your SQL Server if anything ever goes wrong.

Install SQL Server 2008 Express

SQL Server 2008 Express requires .NET Framework 3.5 SP1, if your server does not have .NET Framework 3.5 SP1 you will need to download .NET Framework 3.5 SP1 and install it on your server. You can download .NET Framework 3.5 SP1 from http://go.microsoft.com/fwlink/?LinkId=120550
SQL Server 2008 Express requires Windows Installer 4.5, if your server does not have Windows Installer 4.5 you will need to download Windows Installer 4.5 and install it on your server. You can download Windows Installer 4.5 from http://go.microsoft.com/fwlink/?LinkId=123422
SQL Server 2008 Express requires Windows PowerShell 1.0, if your server does not have Windows PowerShell 1.0 you will need to download Windows PowerShell 1.0 and install it on your server. You can download Windows PowerShell 1.0 from http://go.microsoft.com/fwlink/?LinkId=120552
When you are ready to install SQL 2008 Express, follow these steps:

1. Run SQLEXPRWT_x86_ENU.EXE (or SQLEXPRWT_x64_ENU) to install SQL 2008 Express.
2. At the "SQL Server Installation Center", choose "System Configuration Checker" to make sure you are ready to install SQL 2008 Express
   
   

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3. When the "System Configuration Checker" has validated that you are ready to install SQL 2008 Express, return to the "SQL Server Installation Center" and click on Installation.
   
   

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4. Select "New SQL Server stand-alone installation or add features to an existing installation"
   
   

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5. A setup support check will run. Make sure there are no errors or warnings, press OK.
6. The "SQL Server 2008" Setup will now appear, on the Product Key page, click Next.
7. Check the box "I accept the license terms" and click Next.
8. Click "Install" to install the Setup Support Files.
9. When the Setup Support Files install is complete, click Next.
10. You will now be in the "Feature Selection" page. Select "Database Engine Services" and "Management Tools - Basic" and then click Next.
11. In the "Instance Configuration" page, specify MSSQLSERVER in both the "Named instance" and "Instance ID" fields, this will force SQL Server 2008 Express to install as the Default instance. If you want to install as a named instance, specify a name other than MSSQLSERVER.
    
    

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12. Click Next twice.
13. You will now be in the "Server Configuration" page. Change the SQL Server Database Engine's Account Name to "NT AUTHORITY\SYSTEM" and SQL Server Browser's Startup Type to Automatic, then click Next.
    
    

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14. On the Database Engine Configuration page, you can either leave it configured to use Windows Authentication Mode only or Mixed Mode (SQL Server authentication and Windows authentication). I usually enable Mixed Mode so that if for some reason my security gets messed up I always have a backdoor account (the SA account). If you choose Mixed Mode, you will need to enter and confirm a password for the SA account.
15. Before you can continue, you will need to specify the group(s) that you want to have unrestricted access to SQL Server. Click "Add..." and select the group(s). I recommend that you at least add Administrators and the "Current User" (Service Account). When you are done here, click Next three times, and then click Install.
16. When the installer completes, click Next and then Close.

Enable TCP/IP

During the setup,  you will be prompted for Account Provisioning.   Select the "Mixed Mode (Both Sql Server & Windows authentication)" feature and enter a password for the 'SA' account.  At the bottom of the screen, select  "Add Current User" and enter the Machine(Domain)\Administrator for the machine. See example below.

You will also be prompted for creation of a Database Instance.  You can either take the "Default" SQLExpress name or specify a name for the instance by choosing the "Named" button, then enter the name for your Instance.  You will want to remember which setting you chose for connecting to the Instance for later Ignite configuration. Continue following through the Setup wizard until it has completed successfully.

Once SQLExpress is installed, go to the Start menu and bring up the Server Configuration Manager:

 In the Configuration Manager, you will need to enable TCP/IP, so Ignite can connect to the Instance. Choose "SQL Server Network Configuration" > "Protocols For your instance" > TCP/IP  > right-click - choose Properties > Change the "Enabled " to "YES" and apply your changes.  The example below shows how to enable TCP/IP for the "named" instance, SE12008.

Choose the "IP Addresses" tab on the TCP/IP properties screen and enable all of the IP Addresses listed on the screen by changing the "No" to a "Yes" for the "Enabled" column.  Also, fill out the "TCP Port" entry for all the real IP Addresses by entering 1433 (you can use another port number here, however, 1433 is typically the default port for SQL Server).    In the "IPALL" section, enter a different port, such as 1444 in the example below. You will need to know both the IP port number as well as the IPALL port number for Ignite's configuration.

 

Add Firewall Exceptions

If you have a software firewall installed on your server, you will need to add exceptions for the SQL Server and SQL Browser services. If you are using Windows Firewall, do the following:

1. In your Control Panel, open the Windows Firewall applet.
2. Go to the Exceptions tab.
3. Click Add Program
4. Browse to and select "C:\Program Files\Microsoft SQL Server\MSSQL.10\MSSQL\Binn\sqlservr.exe"
5. Click OK.
6. Click Add Program
7. Browse to and select "C:\Program Files\Microsoft SQL Server\90\Shared\sqlbrowser.exe"
8. Click OK and then click OK again.

If you are using a third-party software firewall, you will need to follow their instructions to add exceptions to sqlservr.exe and sqlbrowser.exe.