Jose,
Servers are within 1 sec of each other.
All SQL Services are running.
I can complete a successful connection via ODBC from my computer, but it doesn’t work when trying from our APP server. I get this error. 
I was thinking password change as well, and have tried re-entering some, but no luck. we’re still getting the same errors. I’ve tried resetting in the OpenEdge Admin Service. Our setup includes a SQL server and an APP Server connected with a crossover cable.
-Bobby