Surface Area Configuration: Computer localhost does not exist on the network, or the computer cannot be configured remotely

I was trying to connect to a local instance of SQL Server from a Dev app server. The application would fail saying

A connection was successfully established with the server, but then an error occurred during the pre-login handshake. When connecting to SQL Server 2005, this failure may be caused by the fact that under the default settings SQL Server does not allow remote connections. (provider: Named Pipes Provider, error: 0 - No process is on the other end of the pipe.)

So I brought up the SQL Server Surface Area Configuration tool (Programs> SQL Server 2005> Configuration Tools >SQL Server Surface Area Configuration) and clicked on Surface Area Configuration for Services and Connections. And this will throw an error:

TITLE: Surface Area Configuration ------------------------------ Computer localhost does not exist on the network, or the computer cannot be configured remotely. Verify that the remote computer has the required Windows Management Instrumentation components and then try again. (SQLSAC) ------------------------------ ADDITIONAL INFORMATION: An exception occurred in SMO while trying to manage a service. (Microsoft.SqlServer.Smo) For help, click: http://go.microsoft.com/fwlink?ProdName=Microsoft+SQL+Server&ProdVer=9.00.3042.00&EvtSrc=Microsoft.SqlServer.Management.Smo.ExceptionTemplates.InnerWmiException&LinkId=20476 ------------------------------ Failed to retrieve data for this request. (Microsoft.SqlServer.SmoEnum) For help, click: http://go.microsoft.com/fwlink?ProdName=Microsoft+SQL+Server&LinkId=20476 ------------------------------ Invalid class (System.Management) ------------------------------ BUTTONS: OK ------------------------------

While searching for a solution I came across this blog http://blogs.msdn.com/b/echarran/archive/2006/01/03/509061.aspx. Ran the command as mentioned there and I was able to bring up the Surface Area Configuration tool.