TCP/IP connection to the host XXXX-XXX using port number XYZ failed.
Database services are not available/?running or Network configuration is not configured correctly for TCP/?IP protocol or IP or host name/? port number is incorrect.
Follow the steps to avoid this issue:
Set your SQL connections to allow TCP/IP:
a) Open the SQL Server Configuration Manager.
b) Click Network Configuration for your SQL Server instance.
c) Make sure that TCP/IP Protocol is enabled.
d) View the TCP/IP Properties dialog box for your database instance, and make sure that the IP Addresses tab has a TCP Port number specified. (The default port is 1433.)
e) Restart all Microsoft SQL services to effect this change.
If possible do a system restart, which is not necessary under normal conditions, but if only the above trick fails, and retry the same.
This is should allow ARS Installer to find the SQL Database instance and continue ARS installation.
Detailed steps of ARS are postponed for another day ;)