MVC 3 App always looking for SQL Express - asp.net-mvc-3

Question

I am facing an weird issue when I try to deploy my MVC 3 application on the server.
I used the VS2010 publish feature to get my build package for the server.
When I try to browse my application I received the error
A network-related or instance-specific error occurred while establishing a connection to SQL Server. The server was not found or was not accessible. Verify that the instance name is correct and that SQL Server is configured to allow remote connections. (provider: SQL Network Interfaces, error: 26 - Error Locating Server/Instance Specified)
Description: An unhandled exception occurred during the execution of the current web request. Please review the stack trace for more information about the error and where it originated in the code.
SQLExpress database file auto-creation error:
The connection string specifies a local Sql Server Express instance using a database location within the application's App_Data directory. The provider attempted to automatically create the application services database because the provider determined that the database does not exist. The following configuration requirements are necessary to successfully check for existence of the application services database and automatically create the application services database:
If the application is running on either Windows 7 or Windows Server 2008R2, special configuration steps are necessary to enable automatic creation of the provider database. Additional information is available at: http://go.microsoft.com/fwlink/?LinkId=160102. If the application's App_Data directory does not already exist, the web server account must have read and write access to the application's directory. This is necessary because the web server account will automatically create the App_Data directory if it does not already exist.
If the application's App_Data directory already exists, the web server account only requires read and write access to the application's App_Data directory. This is necessary because the web server account will attempt to verify that the Sql Server Express database already exists within the application's App_Data directory. Revoking read access on the App_Data directory from the web server account will prevent the provider from correctly determining if the Sql Server Express database already exists. This will cause an error when the provider attempts to create a duplicate of an already existing database. Write access is required because the web server account's credentials are used when creating the new database.
Sql Server Express must be installed on the machine.
The process identity for the web server account must have a local user profile. See the readme document for details on how to create a local user profile for both machine and domain accounts.
I looked at my configuration file and found that default connection strings were present which were
<add name="ApplicationServices"
connectionString="data source=.\SQLEXPRESS;Integrated Security=SSPI;AttachDBFilename=|DataDirectory|aspnetdb.mdf;User Instance=true"
providerName="System.Data.SqlClient" />
So, it made sense that the this connection string was in use. I removed this connection string and all the default configuration for ASP.NET membership and providers.
But, now when I try to browse my application it still showing the same SQLExpress database creation error.
below is my config file.
<?xml version="1.0"?>
<!--
For more information on how to configure your ASP.NET application, please visit
http://go.microsoft.com/fwlink/?LinkId=152368
-->
<configuration>
<connectionStrings>
<!--Home Connection String-->
<add name="DBEntities"
connectionString="metadata=res://*/EDMX.HostelBookNowDB.csdl|res://*/EDMX.HostelBookNowDB.ssdl|res://*/EDMX.HostelBookNowDB.msl;provider=System.Data.SqlClient;provider connection string="data source=<Server Name>;initial catalog=DB;persist security info=True;Integrated Security=SSPI;multipleactiveresultsets=True;App=EntityFramework""
providerName="System.Data.EntityClient" />
</connectionStrings>
<appSettings>
<add key="webpages:Version" value="1.0.0.0"/>
<add key="ClientValidationEnabled" value="true"/>
<add key="UnobtrusiveJavaScriptEnabled" value="true"/>
<add key="HotelManagerHomePage" value="~/HotelManager"/>
</appSettings>
<system.web>
<compilation debug="true" targetFramework="4.0">
<assemblies>
<add assembly="System.Web.Abstractions, Version=4.0.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" />
<add assembly="System.Web.Helpers, Version=1.0.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" />
<add assembly="System.Web.Routing, Version=4.0.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" />
<add assembly="System.Web.Mvc, Version=3.0.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" />
<add assembly="System.Web.WebPages, Version=1.0.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35" />
</assemblies>
</compilation>
<authentication mode="Forms">
<forms loginUrl="~/Home" timeout="2880" />
</authentication>
<pages>
<namespaces>
<add namespace="System.Web.Helpers" />
<add namespace="System.Web.Mvc" />
<add namespace="System.Web.Mvc.Ajax" />
<add namespace="System.Web.Mvc.Html" />
<add namespace="System.Web.Routing" />
<add namespace="System.Web.WebPages"/>
<add namespace="HostelBookNow.Web.Helpers"/>
</namespaces>
</pages>
</system.web>
<system.webServer>
<validation validateIntegratedModeConfiguration="false"/>
<modules runAllManagedModulesForAllRequests="true"/>
</system.webServer>
<runtime>
<assemblyBinding xmlns="urn:schemas-microsoft-com:asm.v1">
<dependentAssembly>
<assemblyIdentity name="System.Web.Mvc" publicKeyToken="31bf3856ad364e35" />
<bindingRedirect oldVersion="1.0.0.0-2.0.0.0" newVersion="3.0.0.0" />
</dependentAssembly>
</assemblyBinding>
</runtime>
</configuration>
Any idea what wrong I might be doing that, application is still looking for the SQLExpress rather than my Server.
I am using ASP.NET MVC 3 app with Entity Framework 4.1.