Problems deploying 2008 R2

I am getting this error msg when trying to deploy a cube in 2008 R2:

Error	5	The project could not be deployed to the 'localhost' server because
of the following connectivity problems :  A connection cannot be made.
Ensure that the server is running.  To verify or update the name of the target server
right-click on the project in Solution Explorer, select Project Properties, click
on the Deployment tab, and then enter the name of the server.		0	0	

I tried changing the target server from 'localhost' to my SSMS user name but that didn't work. I am running XP Professional SP3.

Any ideas?