Kevin,
The password parameter should be pwd, not password.

Kurt

Try 
._sSqlConnStr = "DRIVER=SQL Server;SERVER=DSERVER3;database=Euro_Mig_subset;uid=sa;pwd=''"
._iConnHandle = SQLSTRINGCONNECT(._sSqlConnStr)

>I'm now getting prompted for a password.
>
>
>>Try

>>._sSqlConnStr = "DRIVER=SQL Server;SERVER=DSERVER3;database=Euro_Mig_subset;uid=sa;password=''"
>>._iConnHandle = SQLSTRINGCONNECT(._sSqlConnStr)
>>
>>

See also Re: SQL Connection Error Message #835711
>>
>>
>>
>>
>>>When I try to connect, SQL is prompting me for a server login
>>>on the SQLSTRINGCONNECT line
>>>
>>>My code:
>>>
>>>

>>>
>>>sSqlConnString= "DRIVER={SQL Server};SERVER=(DSERVER3);database=Euro_Mig_subset;uid=sa;password=''"
>>>
>>>._iConnHandle = SQLSTRINGCONNECT(._sSqlConnStr)
>>>
>>>IF ._iConnHandle < 0
>>>
>>>  AERROR(aErrInfo)
>>>  iErrNo = aErrInfo[1]
>>>  sErrMsg = aErrInfo[2]
>>>	
>>>  .sMessage = "Unable to connect to SQL database" + CHR(13)+;
>>>              "Error " + TRANSFORM(iErrNo) + CHR(13)+;
>>>              sErrMsg
>>>							
>>>ENDIF
>>>

>>>