Cognos 8 Reportnet

[varshams]

I tried installing Cognos 8 reportnet.
when i am defining the datasource connections using sql server odbc, it gives following error

Failure   QE-DEF-0285 The logon failed.QE-DEF-0321 The userID or password is either missing or invalid.RQP-DEF-0068 Unable to connect to at least one database during a multi-database attach to 1 database(s) in:
    testDataSourceConnection
UDA-SQL-0031 Unable to access the "testDataSourceConnection" database.UDA-SQL-0129 Invalid login information was detected by the underlying database.[Microsoft][ODBC SQL Server Driver][DBNETLIB]SQL Server does not exist or access denied.[Microsoft][ODBC SQL Server Driver][DBNETLIB]ConnectionOpen (Connect()).   


any idea?
i always face problems while giving datasource connections.

But OLE db connection is working but not ODBC?

Thanks,
Varsha