Kiln has not yet been configured to access the database.
For security reasons, this cannot be done over the web. To configure it, please edit the "kilnConnectionString" connection string in Kiln's web.config file.
Also please note that if your SQL machine is on a different server than your web server, you may have to use SQL Server Authentication, and not Integrated Authentication.
Once you've fixed the connection strings, please go here to verify database access.
Below is data about the specific SQL error that occured.