Stu,
sorry I was working on something(imagine that)
here is how you do it:
let say you have this in your file:

DRIVER=SQL server;SERVER=myServer;UID=whaterver;PWD=whatever;DATABASE=mydata;"

now from your program you can:

cStr=filetos('c:\temp\text_file.txt')
lnHandle = SQLSTRINGCONNECT(cStr)
= SQLEXEC(lnHandle,"SELECT * FROM mytable","temp")
= SQLDISCONNECT(lnHandle)

does it help?