Connect to MS SQL Server via ODBC vs OLEDB.
Connecting via the OLEDB adaptor seems to have it’s quirks. Another posibility is to connect via ODBC (tested with Rails 1.1.6)
e.g. for a trusted connection
development: adapter: sqlserver mode: odbc dsn: Driver={SQL Server};Server=<your server>;Database=<your db>;Trusted_Connection=yes;