Connection SQL?

Two Questions:

1. Not sure how to establish connection to database. I have my own dedicated server. I have created a database and created tables with script. Now I need to establish a connection string. I understand the connection string, I am just not sure where to put it? Do I put it in the storeconstant.asp

<%private const scCrypPass=""
private const scDSN=""
private const scDB=""
private const scStoreURL=""%>

If so what goes where. My string is this

provider="SQLOLEDB";data source="SERVER";initial catalog="DATEBASENAME";user id="USERNAME";password="************";

2. I have the cart temporarly installed at an IP address. I want to customize the cart before I go live. Is this a problem?