more mystery on (local) vs localhost

ping localhost WORKS FINE
connectionString = "server=localhost;uid=sa;pwd=;database=pubs;"
FAILS
connectionString= "server=(local);uid=sa;pwd=;database=pubs;"
WORKS
C:\>osql -U sa -S localhost FAILS
Password:
[DBNETLIB]General network error. Check your network documentation.
[DBNETLIB]ConnectionRead (recv()).
C:\>isql -U sa -S localhost WORKS
Password:
1>
>
> ping localhost WORKS FINE
> connectionString = "server=localhost;uid=sa;pwd=;database=pubs;"
> FAILS
> connectionString= "server=(local);uid=sa;pwd=;database=pubs;"
> WORKS
> C:\>osql -U sa -S localhost FAILS
> Password:
> [DBNETLIB]General network error. Check your network documentation.
> [DBNETLIB]ConnectionRead (recv()).
> C:\>isql -U sa -S localhost WORKS
> Password:
> 1>
There are known issues and bugs filed against the use of 'localhost'.
You should always use '(local)' in your connection string.
Hope this helps,
Eric Crdenas
SQL Server senior support professional
sql