SQL Server 2000 Connection Error - Shaking Hands Before Logging In?

I am developing an ASP.NET application in VS 2010 with a SQL Server 2000 backend (I know, I know ...)

I have been doing fine with this setting for most of the last 3 months. However, yesterday I applied VS 2010 SP1, and now connecting to this database causes the following error:

Connection timed out. Expired waiting period trying to use authorization confirmation confirmation before entering the system. This may be due to the fact that the acknowledgment was not completed or the server was unable to respond back in time. The duration spent trying to connect to this server was - [Pre-Login] initialization = 72; acknowledgment = 44924

Keep in mind that I did not make any changes to either the connection string or the SQL / 2000 SQL Server. Therefore, there must be a reason why this has happened since the advent of new additions.

My connection elements are pretty vanilla with

conn.Open();
SqlCommand cmd = new SqlCommand();
cmd.Connection = conn;
cmd.CommandText = sqlStatement;
SqlDataReader dr = cmd.ExecuteReader();
resultData.Load(dr);
dr.Close();
conn.Close();

And my connection string looks like

Data Source=192.168.1.200;Persist Security Info=false;Initial Catalog=MyDB;User Id=MyUser;Password=MyPW;Timeout=45;

You can see that I made changes to the timeout, but this did not work. But, again, I should not have made any changes. I just applied VS 2010 SP 1 yesterday, it was the only change. HELP!