It is more complicated than just Windows 7 on any network drive always failing to make an ODBC connection to the SQL Server. So I feel it is Windows 7 interaction with something else.

One of my developers cannot duplicate it on his test configuration. I can however duplicate it on my test configuration 100% of the time.

We have around 700 installations and over 10,000 users and so far only about 6 locations have reported this problem. I suspect hundreds of our installations and probably a few thousand users are running Windows 7 workstations and they must not be having this problem.

We are collecting configuration data from those customers to see if it there is some common element. So far I think it has only happened with network folders on Windows Server 2008 computers. Although that might just be a coincidence.