How to turn IDENTITY_INSERT on and off using SQL Server 2008?

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Why am I getting an error doing an insert when IDENTITY_INSERT is set to OFF?

How do I turn it on properly in SQL Server 2008? Is it by using SQL Server Management Studio?

I have run this query:

SET IDENTITY_INSERT Database. dbo. Baskets ON

Then I got the message back in the console that the Command(s) completed successfully.
However when I run the application, it still gives me the error shown below:

Cannot insert explicit value for identity column in table 'Baskets' when 
IDENTITY_INSERT is set to OFF.

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