Never use "[local]" in the SQL settings... ServerName\InstanceName is my usual first choice but IPaddress\InstanceName is fine.
If you can Test Connection successfully, but not log in from a workstation, it's probably a firewall issue. Set up a DSN and use that for testing the connection to SQL so you can eliminate Sage settings as the problem.
For a recent upgrade I had to go into SQL config and force the port # to 1433, bypassing problems with dynamic ports.
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Kevin Moyes
Technical Systems Analyst
Munjal White Consulting Co.
Toronto ON
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