Thank you for post into the forum.
Sadly I am totally confused has to how you have the following in your connection string:
Application Name="Red Gate Software - SQL Tools"
I have our SQL tools installed and created a new web project in VS2010. Looked at the properties for the web.config and there is no entry like the one above.
The only workaround I can suggest, is to locate the template that creates the web.config and check it's properties.