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BE actually uses SQL to store config information and the catalogs. For most people, BE just installes a copy of "SQL Express" - sort of a run-time version of SQL. When you install BE, you'll see on the the install wizard steps is to specify which SQL it should use, with an option of installing & using SQL Express.
SQL Express and full-blown SQL can co-exist together, though not always successfully. I'd recommend you try reinstalling your copy of BE on top of your existing install, and make sure you specify to use the SQL Express. That might fix your server. Couldn't hurt.