THIS IS DRIVING ME NUTS!!

I currently can't connect to my database in SQL Server 2005 (enterprise) but as soon as I try to use any functions, I get cryptic errors found below.  I am about to pull my hair out.  Everything was working fine for around 4 days and now everything just blows up.  I've tried using both sql authentification and also windows:

Errors I'm getting (print screens):

http://www.photopizzaz.biz/junk/sqlserver_2005_errors_and_resolutions.doc

SQL logs:

http://www.photopizzaz.biz/junk/logs.txt

Event log errors are:

Event Type: Error
Event Source: MSSQLSERVER
Event Category: (4)
Event ID: 17809
Date:  12/21/2005
Time:  11:18:34 PM
User:  N/A
Computer: BG-SQL2005
Description:
Could not connect because the maximum number of '4' user connections has already been reached. The system administrator can use sp_configure to increase the maximum value. The connection has been closed. [CLIENT: <local machine>]
For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.
Data:
0000: 91 45 00 00 14 00 00 00   ?E......
0008: 0b 00 00 00 42 00 47 00   ....B.G.
0010: 2d 00 53 00 51 00 4c 00   -.S.Q.L.
0018: 32 00 30 00 30 00 35 00   2.0.0.5.
0020: 00 00 00 00 00 00         ......  
 
Event Type: Failure Audit
Event Source: MSSQLSERVER
Event Category: (4)
Event ID: 18456
Date:  12/21/2005
Time:  10:34:03 PM
User:  N/A
Computer: BG-SQL2005
Description:
Login failed for user 'sa'. [CLIENT: <local machine>]
For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.
Data:
0000: 18 48 00 00 0e 00 00 00   .H......
0008: 0b 00 00 00 42 00 47 00   ....B.G.
0010: 2d 00 53 00 51 00 4c 00   -.S.Q.L.
0018: 32 00 30 00 30 00 35 00   2.0.0.5.
0020: 00 00 07 00 00 00 6d 00   ......m.
0028: 61 00 73 00 74 00 65 00   a.s.t.e.
0030: 72 00 00 00               r...    
Event Type: Information
Event Source: MSSQLSERVER
Event Category: (2)
Event ID: 8561
Date:  12/21/2005
Time:  10:19:51 PM
User:  N/A
Computer: BG-SQL2005
Description:
Recovery of any in-doubt distributed transactions involving Microsoft Distributed Transaction Coordinator (MS DTC) has completed. This is an informational message only. No user action is required.
For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.
Data:
0000: 71 21 00 00 0a 00 00 00   q!......
0008: 0b 00 00 00 42 00 47 00   ....B.G.
0010: 2d 00 53 00 51 00 4c 00   -.S.Q.L.
0018: 32 00 30 00 30 00 35 00   2.0.0.5.
0020: 00 00 07 00 00 00 6d 00   ......m.
0028: 61 00 73 00 74 00 65 00   a.s.t.e.
0030: 72 00 00 00               r...    
Event Type: Error
Event Source: Report Server Windows Service (MSSQLSERVER)
Event Category: Management
Event ID: 107
Date:  12/21/2005
Time:  4:46:14 PM
User:  N/A
Computer: BG-SQL2005
Description:
Report Server Windows Service (MSSQLSERVER) cannot connect to the report server database.
For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.