try this:

lcSqlString = [Driver={SQL Server};Server=vinodhome;Database=vinod;Trusted_Connection=yes;]
lnSqlHandle = SQLSTRINGCONNECT(lcSqlString)
IF lnSqlHandle > 0
   MessageBox("HURRAY!")
ENDIF

>This folder is empty, whereas in odbc it is showing me the entry as sqlserv,
>this i pasted from odbc :-
>
>Microsoft SQL Server ODBC Driver Version 03.85.1117
>
>Data Source Name: sqlserv
>Data Source Description:
>Server: vinodhome
>Database: (Default)
>Language: (Default)
>Translate Character Data: Yes
>Log Long Running Queries: No
>Log Driver Statistics: No
>Use Integrated Security: Yes
>Use Regional Settings: No
>Prepared Statements Option: Drop temporary procedures on disconnect
>Use Failover Server: No
>Use ANSI Quoted Identifiers: Yes
>Use ANSI Null, Paddings and Warnings: Yes
>Data Encryption: No
>
>i also tested the same and it is returning following :-
>
>Microsoft SQL Server ODBC Driver Version 03.85.1117
>
>Running connectivity tests...
>
>Attempting connection
>Connection established
>Verifying option settings
>Disconnecting from server
>
>TESTS COMPLETED SUCCESSFULLY!
>
>
>
>>Create a Class based on Cursor Adapter, Rught Click on it and Click on Builder :o)
>>
>>BTW I post my previous message before I see that you have succeded with DSN. Can you post the DSN contents? file usualy resides in \program files\common files\ODBC\Data Sources
>>
>>
>>>no, i have not tried with this wizard, i chkd the wizard list avl in vfp but this is not listed, where i can find this ??
>>>
>>>>Well, I've never used ODBC to access SQL Server from VFP (I'm an ADO kind of guy) but, have you tried connecting from the CursorAdapter wizard?
>>>>
>>>>>This is a very detailed article, thanks for this.
>>>>>
>>>>>for the time being i was able to solve this issue by creating dsn, i'm using following lines but still nothing is happennning, do u hv any idea
>>>>>
>>>>>
>>>>>hConn = SQLStringConnect("DSN=sqlserv;UID=vinod;PWD=mypass;Database=vinod")
>>>>>? hconn && this is returning 1
>>>>>SQLEXEC(hConn, "use vinod")
>>>>>SQLEXEC(hConn, "sele * from zsample", "test")
>>>>>BROWSE && this is asking table to open i.e. no data is getting transferred..
>>>>>
>>>>>there is also mcafee firewall installed, do u think it is creating some problems.
>>>>>
>>>>>
>>>>>>This kind of message is very common with SQL Server/MSDE 2000 SP3 and up. When I first had this problem I solved it with the information contained here:
>>>>>>
>>>>>>http://support.microsoft.com/default.aspx?scid=kb;en-us;328306
>>>>>>
>>>>>>HTH,
>>>>>>
>>>>>>Enmanuel
>>>>>>
>>>>>>>I Even tried that but result is same, not sure what i'm doing wrong which is creating this problem.
>>>>>>>
>>>>>>>
>>>>>>>>Vinod,
>>>>>>>>Easiest way id to create a DSN (Administration Tools->ODBC) file, then create a connection, visual not through CREATE CONNECTION. choose this DSN ans SELECT Connection string. The the right connection strig will appear.
>>>>>>>>
>>>>>>>>
>>>>>>>>>I Have installed following on win xp Home edition :-
>>>>>>>>>
>>>>>>>>>1. SQL 2000 (Client and Connectivity option was allowed), installed this from Win 2003 SBS Server Premium technologies CD.
>>>>>>>>>
>>>>>>>>>2. MSDE 2000 provided on VFP 9 CD. Installed with a SAPWD parameter and give password.
>>>>>>>>>
>>>>>>>>>Finally using windows authentication i was able to detect the dummy server, SQL server Service is started and using Enterprise Manager i was able to create a dummy database also.
>>>>>>>>>
>>>>>>>>>But my all attempts of connecting through VFP were failed, not sure where the things are wrong.
>>>>>>>>>
>>>>>>>>>i'm using following lines to do this connection, username and password used are same of the admin user in which i'm logged in my computer and even i created a new user with same name and password and gave access of all the files :-
>>>>>>>>>
>>>>>>>>>ConnStr = [Driver={SQL Server};Server=(vinodhome);Database=(vinod);UID=vinod;PWD=mypass;]
>>>>>>>>>Handle = SQLStringConnect( ConnStr )
>>>>>>>>>
>>>>>>>>>but it is again n again showing me following :-
>>>>>>>>>
>>>>>>>>>Sql server doesnot exist or access is denied.
>>>>>>>>>
>>>>>>>>>Pls help.