Take a look at - http://support.microsoft.com/kb/328306
Hope this helps
|||Also got the error from another machine "does not allow remote connections" when connecting to ODBC.The fix was to ensure that SQL Server Surface Area Configuration (via Start / etc) , Remote Connections set to "Using both TCP/IP and named pipes" (which was already default in my instance), and instead of using the name of the server in the ODBC drop-down list, use the servier IP, i.e. 10.0.0.XXX.|||
Is your issue resolved? If so, please mark your question anwserred.
If you are able to connect using IP address, but not with machine name, most likely you have a DNS problem on your network.
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