OK, loads of problems here.
First off, your database should not be in the source code folder - at worst, it should be in the Bin/Debug and / or Bin/Release folder so it is easier to find - or better still in a data specific folder. This may help:
Where should I store my data?[
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Secondly, to use it from your own folder (even in a data folder) is a fairly poor idea - it means that your connection string needs to ATTACH the database so that SQL can use it, and that is only available for development, in the SQL Server Express editions - it isn't possible in production versions of the server software. You should pass control of the DB to SQL Server (easiest way: create it in SQL Server Management Console) and let it worry about where to keep it!
THen you need an SQL Server connection string, and that needs authentication, which for a local server may be pretty simple, or you may need an SQL User ID and Password combination to connect. This may help:
Simple SQL Connection String Creation[
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Once you have sorted that out, if it still doesn't work, show us the relevant code fragments and explain what happened.