It sounds like. When you use SQL Server Management Studio ( from now on we'll call it SSMS for short) does it let you in? Does it take you to a tabbed set up where you can type in and run queries? That will verify that you really want BOB\SQLEXPRESS and not just BOB.
Should the path be LocalHost/RootFolder/The_Rest, or do you want RootFolder in there at all?
Have you set up a virtual folder in IIS? LocalHost gets mapped to your computer as the ( web) server, and then from there, you would have a virtual folder called RootFolder. It doesn't need to be called that on disc, that's why it's virtual. It can point anywhere, but gets exposed as a web site.
Creating a virtual directory
Configuring a virtual directory
And here's a table of contents for articles about it.
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