It is not uncommon for UDP traffic on port 1434 to be blocked for security reasons. When this is the case, SQL Browser does not return the dynamic port number and static ports should be used instead.
Troubleshooting can be difficult depending on where UDP 1434 is blocked. If blocking is done at the router between subnets, SQL Browser will work if the remote machine is on the same subnet, but not if it is across the router boundary on another subnet.
Microsoft has a free tool called PortQry for troubleshooting ports. It is available for download from http://www.microsoft.com/downloads/details.aspx?FamilyID=89811747-C74B-4638-A2D5-AC828BDC6983&displaylang=en. Run PortQry from a command prompt using syntax similar to this:
portqry -n ipAddressOrMachineName -e 1434 -p UDP
If 1434 is blocked, the last line returned from PortQry looks like this:
UDP port 1434 (ms-sql-m service): FILTERED
If a static port is assigned to a named instance, a client alias can be used instead of putting the static port number into connection strings.