Here's a few tips:
1) Assuming that you're setting up a development system (like myself) - when installing SQL Server Express 2008, make sure to select the option to install SQL Server 2008 Management Studio. This option is not selected by default and can only (apparently) be installed with the default instance. If you fail to select this option you must de-install the instance and re-install to get the administrative tools.
2) Install SQL Server to use sql server authentication
3) The SQL Server browser service MUST be running
4) On my Win32 platform, SQLJDBC.JAR, located in Microsoft JDBC Driver installer, seemed to work the best with Presto. This file can be uploaded directly from the Presto GUI depicted below. Note the name of the java class - com.microsoft.sqlserver.jdbc.SQLServerDriver

5) Enter your connection string as follows:
jdbc:sqlserver://localhost;instanceName=SQLEXPRESS;DatabaseName=testdb

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