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SQLExpress comes out of the box with the network protocols turned off which means you can only use it from the local machine. To fix this problem read the following MS article.
http://support.microsoft.com/kb/914277
Talon asks for a database name. THIS IS NOT THE POSitive DATABASE. Talon in NO WAY uses ANY of POSitive's data directly from the database. This prompt is asking where you would like to store the Talon DVR data. So you can put ANYTHING other than a POSitive database for the database name. Talon will create that database and begin storing DVR config data in it.