Check that the User and Password attributes for the data source in the odbc.ini file specify a valid Windows user name and password.
This error also displays if you try to connect to SQL Server with a SQL Server user name and password but SQL Server's authentication mode is set to Windows Authentication only. To connect by using a SQL Server account, the security mode for the SQL Server instance must be changed to mixed (both SQL Server and Windows authentication are enabled).
To enable mixed mode, your database administrator must set the SQL Server security property Server Authentication to SQL Server and Windows Authentication mode. Note that Microsoft recommend that Windows authentication is used to connect to SQL Server whenever possible.