For what it's worth, I've also had issues getting native ODBC connecting to a MS SQL database. It seems that Wine has troubles with this in WinXP mode. In Win98 mode it connects to the database fine. Perhaps try to change the windows version to 98 in Wine and see if that helps? Another option would be to install freetds and configure the dsn via unixODBC. I use that for one of my apps in Wine and it works nice.
