[Ty-ERR][Tm-2012-10-18 18:13:20][Ex-DB Connect failed : [163:0x80004005] [DBNETLIB][ConnectionOpen (Connect()).]SQL Server does not exist or access denied. [M:IDBInitialize::Initialize]][Rt-CDBComponent::Connect]
as you can see in the log "SQL Server does not exist or acess denied", in this case you must check 2 things:
1- if you enabled your IP in SQL Network TPC/IP configuration (Sql Configuration Tool)
2- if you have a "allyas" of server in SQL Configuration to allow the conections with odbc
A way i can find to fix this is making the 2 steps correctly.
for TPC/IP you just need to Enable the IP and choose the 1433 port, then you make a allyas with name Server with your ip TPC/IP protocol and 1433 port, Restart the Sql Server process and then make a simple conection on ODBC if needed.