Normally you don't have to do this, so setting this is an exception, any you have to be able to test the remote service called SQL SERVER and your instance. .
You get into this kind of issue if you didn't let the program create a new instance of the database within your existing sql server. If you created our database within your instance, then you would specify the main instance and have to give owner/creator permissions to the main SQL database instance. Let's take a closer look at this though support: http://support.diditbetter.com/support-request.aspx