When I am running this from cmd on my SQL Server 2008 instance:
sqlcmd -U sa -S mymachinen_name\\MSSQLSERVER
(where MSSQLSERVER
MSSQLSERVER
Typically, the MSSQLSERVER service is the service of a un-named default instance.
Therefore, try this:
sqlcmd -U sa -S mymachine_name
(without specifying any instance name - just the machine name)