I want to document databases contained within 'localhost' on my local machine.

I want to build on the buildmachine using 'localhost' server on build machine.

HS3 is reporting it cannot connect via localhost on build machine.

I can stronly type the server name and it will connect with the server DB.

Thoughts?

Take a look at this post:
http://www.innovasys.com/cs/forums/p/31/35.aspx#35

Looks like using (local) instead of localhost is the solution. SQL Server isn't always happy with localhost but should always be happy with (local).