Access writes when I try to create ADP file having only MS SQL EXPRESS SERVER 2005. MS Access 2007 writes it does not see server. What to do?

Use a real DBMS. SQL Express is a development only system and is not even as robust as Access.

I think I also read something about it not working with 2007 too, but I may be wrong.

SQL Server Express works just fine for Access (and is not a development only tool - it is a real alternative to an Access backend). The problem you are experiencing is that you aren't using the correct ODBC driver. You need to use SQL Native Client instead of the SQL Server driver.

I stand corrected.