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Error: Failed to connect to the specified server. Bad login user[]

Error Message

Connecting to ArcSDE for Microsoft SQL Server from ArcGIS using Windows Authentication returns:

"Failed to connect to the specified server. Bad login user[]"

Cause

Microsoft Data Access Components (MDAC) needs to be updated.

Solution or Workaround

Download MDAC 2.6 or 2.7 from Microsoft and install it on the ArcGIS machine.

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