sql express 2008 - Failed to generate a user instance of SQL Server due to a failure in starting the process for the user instan

To invoke the user instance, use the user instance connection string keyword in SQLClient, which can be true or false, and defaults to false. When set to false, no user instances support is in effect and original behavior is preserved.

For example:
If you make the connection string as following:
 
connectionString="Data Source=./SQLEXPRESS;AttachDbFilename=|DataDirectory|NORTHWND.MDF;Integrated Security=True;User Instance=False"
 
When the application will check if the NORTHWND is attached in SQL Server Management Studio already, if not, database file NORTHWND.MDF will be attached as normal, and the application will connect it with windows authentication.
 
For the issue, please try adding "connection timeout" parameter with a value of 120, to the connection string, or switch the parent SQL Express account from network system or a domain account to local system account.
 
Please refer to the following links for more information:

User Instances for Non-Administrators
http://technet.microsoft.com/en-us/library/ms143684.aspx
 
Working with User Instances
http://msdn2.microsoft.com/en-us/library/ms254504.aspx