>I'm at a loss. You have an NT Group that you've given authority to log into the server. The users are members of that NT Group. When you make the DSN, are you checking the box NT Authentication box?
>

Definitely. The NT group is a local group (for the domain), not global. As I mentioned, SQL resides on a stand alone server. I mention that because I had some problems starting the SQLExec service using a non system account (I didn't do the install) because of a permissions problem. I had to add the account to the local (machine) admin group.
I can log onto my (NT) workstation as test1 (a member of SQLUsers group) and, using the query analyzer, cannot access SQL. After I add test1 to the logins, I can access it with no problem.

Thanks
John