Your strings are pointing to your local computers settings, you need to get the format for connecting from your host provider.
Mine's with godaddy, and a correct format would look something like this:
<connectionStrings>
<add name="classifiedsConnection" connectionString="Data Source=xxxxxxxxxxxxxxxxxx;
Initial Catalog=xxxxxxxxxxxx;
User ID=xxxxxxxxxxxxx;
Password='xxxxxxxxxxx';" />
<remove name="LocalSqlServer"/>
<add name="LocalSqlServer" connectionString="Data Source=xxxxxxxxxxxxxxxxxxxxxxxx;
Initial Catalog=xxxxxxxxxx;
User ID=xxxxxxxxxxxxx;
Password='xxxxxxxxxxxxxx';" />
</connectionStrings>
Talk to your host.
Good luck
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