So today I had a frustrating hour or so trying to add a new SQL Server Authentication Mode login to my SQLExpress 2008R2 instance using management console (for the purpose of connecting with Railo 3.2 ).. which is supposed to be trivial... turns out it is... when you don't have SQL Server Authentication mode shut off, as it was in my installation.
For me, it was Steps 11 and 12 that were key.
http://www.linglom.com/2009/03/28/enable-remote-connection-on-sql-server-2008-express/