Data Connection

I am trying to create a data connection to SQL and I'm getting the following error. How do I fix this or make the connection to SQL?

Unable to connect to database.
It is only possible to connect to SQL Server Desktop Engine databases and Microsoft Access with this version of Visual Studio.

I'm using VB .net Version 7. When I initially setup the connection and test it, it works. Then when I click okay to close screen, that's where I get the error.

Any help with this would be greatly appreciated.