Local Database error

Hi all, 

I am trying to build a component in c# where the user will provide a string and the component will read through a database and return the values related to that string. So far I managed to build it using server based databases but I want to use now local database files and the entity framework as it is the only way(?) to make the component work in any machine without the need of a server or so. 

Unfortunately even though the code is working for any other VS application (winforms, console) when I try to run it using my component i get the error

"1. Solution exception:The specified named connection is either not found in the configuration, not intended to be used with the EntityClient provider, or not valid."  

any ideas why this is happening? (I use Linqtosql to identify the provided string and return the results I am looking for)

Thanks a lot!

Tasos