I have installed SQL Server Management Studio Express 2005 in windows 7.
SERVER TYPE: Database Engine
SERVER NAME: Avani-PC\SQLEXPRESS
AUTHENTICATION: Windows Authentication
USER NAME: Avani-PC
when I click on connect I found the following Error:
This version of Microsoft SQL Server Management Studio Express can only be used to connect to SQL Server 2000 and SQL Server 2005 servers.(Microsoft.sqlServer.Express.connectionDlg)
I just ran in to this issue as well but then was able to find the solution. You just need the newer version of SSMSE which is now 2008! Here's the MS download page:
http://www.microsoft.com/en-us/download/details.aspx?id=7593