>OK I am back in the office connected to the states domain server and my vfp program connects just fine.
>SO does that mean at home I have to use SQLserver authentication?

It's possible that the problem may be in the driver... I've had a case when SSMS connected fine, but VFP didn't - and the difference was in the version of the odbc driver in the connectstring. The proper driver for SQL 2008 is

DRIVER=SQL Server Native Client 10.0;

Try that on the machine from which the old one won't.