See if http://weblogs.sqlteam.com/phils/archive/2005/11/30/8466.aspx helps

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>Attempts to run sql against an instance of a Linked Server (Teradata) results in the following error:
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>Msg 7302, Level 16, State 1, Line 1
>Cannot create an instance of OLE DB provider "TDOLEDB.1" for linked server "PRD_ALLVM".
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>I am a member of the sysadmin group.
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>Surface Area Configuration allows Ad Hoc Remote Queries.
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>OLE DB Provider for Teradata (v12.0) is installed (successfully).
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>Security Options on Linked Server are set to use my credentials for the Teradata DB. (I can access the db thru Teradata's UI)
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>Server Options on the Linked Server have Data Access and Use Remote Collation set to TRUE.
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>The TDOLEDB.1 provider is set to Allow inprocess and Index as access path.
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>Questions: Would the Sql Server need to be Stopped and then Restarted after the installation of the OLEDB driver? Does the actual Server need to be rebooted as well?
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>FYI...there is a Linked Server to Oracle as well on this box and we can run queries against it without error.
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>We do not have a DBA on site.
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>Any assistance / guidance is greatly appreciated. The driver was pulled from Teradata's site. The package is named: TDOLEDB_PROVIDER__windows_i386.12.00.00.01.zip
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>Let me know if any additional info is needed.
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>TIA