I know you said the SQL Login in the SQL Settings utility was correct, but is the Database Server there pointing to the complete SQL Server Instance name (and not "localhost")? And if there are multiple SQL Server instances on that server, is the SQL Server Browser service running and being allowed through the Windows Firewall?
------------------------------
Steve Iwanowski, NextStep Technology Advisors, aka DSD Lancaster PA ¯\_(ツ)_/¯
------------------------------