Question : Timeout error - revisit.

Hi experts,

I am receiving below two errors frequently from SQL Server 2005 SP1.

Error 1:
1/30/2007 7:29:56 PM: System.Data.OleDb.OleDbException: [DBNETLIB][ConnectionOpen (Connect()).]SQL Server does not exist or access denied.
   at System.Data.OleDb.OleDbCommand.ExecuteCommandTextForMultpleResults(tagDBPARAMS dbParams, Object& executeResult)
   at System.Data.OleDb.OleDbCommand.ExecuteCommandText(Object& executeResult)
   at System.Data.OleDb.OleDbCommand.ExecuteCommand(CommandBehavior behavior, Object& executeResult)
   at System.Data.OleDb.OleDbCommand.ExecuteReaderInternal(CommandBehavior behavior, String method)
   at System.Data.OleDb.OleDbCommand.ExecuteNonQuery()
   at MyProgram.MyClass.MyFunction(String p1, Double[] p2, String[] p3, OleDbConnection pConnection)

Error 2:
1/30/2007 5:59:03 AM: System.Data.OleDb.OleDbException: Timeout expired
   at System.Data.OleDb.OleDbCommand.ExecuteCommandTextForMultpleResults(tagDBPARAMS dbParams, Object& executeResult)
   at System.Data.OleDb.OleDbCommand.ExecuteCommandText(Object& executeResult)
   at System.Data.OleDb.OleDbCommand.ExecuteCommand(CommandBehavior behavior, Object& executeResult)
   at System.Data.OleDb.OleDbCommand.ExecuteReaderInternal(CommandBehavior behavior, String method)
   at System.Data.OleDb.OleDbCommand.ExecuteNonQuery()
   at MyProgram.MyClass.MyFunction2(String p2, String p3, OleDbConnection pConnection)

The SQL Server 2005 is running on a supposingly powerful hardware which I will provide the configuration if
required. But the question is how to eliminate the above errors completely because I am not able to complete my
job smoothly and timely.

What I did so far is increase number of locks, uses with (nolock) option in my query, limit the number
of users accessing.

Problem is these errors occurred even when excuting "truncate table " statements!

I really need help to eliminate this error or I may be forced to migrate to Oracle and kiss SQL Server goodbye.
Can anyone help? Let me know if more information is required.