In a nutshell, I was attempting the following (using some of your sample as aid):

PUBLIC dsn, hconn
dsn = 'c:\temp\sqlfiledsn.dsn' - This is the File DSN I created

hconn = SQLCONNECT(dsn)

IF hconn <= 0
= MESSAGEBOX('Cannot make connection', 16, 'SQL Connect Error')
ELSE
= MESSAGEBOX('Connection made', 48, 'SQL Connect Message)
= SQLDISCONNECT(gnConnHandle)
ENDIF

Using this code, I can never connect. I know the File DSN I created is valid, but it's actually referencing it which is giving me a hard time. I wouldn't think this would be so tough, arrggghhh !!