configuration file required

Hi

i created a test environment 2 Virtual machines: a Server + SQL DB in the same machine (2008 R2), and a role tailored client + Dev environment in the 2nd one (win7), the instance in the server is running, but when i open MS Dynamics from the server it says "configuration file required {0}"  and the client cant connect to the server "the program could not create a connection to the server."  neither can i open a Database from the Dev enviromnent