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Hi René,
Are you using the EPiServer Installation Manager in the R2 release?
Did you begin with "Install Site (SQLServer)" and wrote a password containing an ampersand in the box at the bottom of step 2?
Thank you,
Cristian
If the connection string password contains an ampersand the installation fails with:
Database Server Name : Error {Reference to undeclared entity 'xxxxxxx'. Line 2, position 147.}
Database Name : Error {Reference to undeclared entity 'xxxxxxx'. Line 2, position 147.}
'xxxxxxx' = the part of the password after ampersand