There is a lot of people out there complaining about SQL Server returning a General network error while executing a command form ADO.NET version 1.1 or 1.0. Since it is a General network error, it seems to me that there are as many reasons for this error as there are people having it. I found several postings and articles about this strange error message, and finnaly I also found a workaround that fixed the problem for me...
What i did was to append: max pool size = 7500, to my connection string.
This fixed the problem, but didn't explain why the problem occured in the first place.. What I discovered later on was that Norton Internet Security was blocking requests to my SQL server, causing some strange errors while pooling connections. When disabling Norton Internet Security, SQL Server works perfect again.. Even without the max pool size setting in the connection string.