Hiren,
If I am not mistaken I cannot see anything on that URL but "Website Design"
Can you access the database on the Local Network? Can you access it via Example: 10.10.111.xxx\SQL2005 then DB name?
If you can do this then you have a firewall issue. Open 1433 and 1434 Also don't run this application as a folder under IIS run it under as a Virtual Directory as an Application and give it it's own app pool.
1. Create application Pool if it is Server 2008 set the application default to Classic NOT integrated.
2. Create Virtual Directory as an application make sure that NETWORK SERVICE has FULL Permissions.
test your ports at this URL for 1433 and 1434
http://www.t1shopper.com/tools/port-scanner/ NOTE: Your firewall can be open and have the application not responding and it will give you a closed port response so make sure things are set correctly.
3. Is the SQL Browser running?
4. Do you have the SQL Surface Config set correctly to accept incomming TCP connections?
Give this a try see what you get?
Joe