Connection failed:
SQL State: 'HY000'
SQL Server Error: 1060
[Microsoft][ODBC SQL Server Driver]Cannot generate SSPI context

We had a couple of testing which might give any indication:

1) We tried an older version of sqlsrv32.dll (3.60.0319) and
got the connection successful to the extend that we could see all
databases from enterprise manager and query analyzer, but could not
query data. The query analyzer complained the version of sql server
odbc driver being lower than 3.7.
2) There is no problem with connection from a client on microsoft
network

Any idea where our problem is?

Thanks,

Tian Chen

1) If IP protocol was loaded on this server (or reloaded) after SP4 or
5 was applied it can cause this problem. If that is the case, please
stop SQL and reapply NT SP4 or 5.

2) Check the permissions on the following registry key:

HKEY_LOCAL_MACHINE\SYSTEM\CURRENTCONTROLSET\SERVICES\NTLMSSP

There should be four subkeys here ENUM, LINKAGE, PARAMETERS, SECURITY.

Permissions on all these keys starting from NTLMSSP down should be:

EVERYONE (Special Access)
        Query Value
        Create Subkey
        Enumerate Subkeys
        Notify
        Read Control
SYSTEM (Full Control)
Servername\Administrators (Full Control)

If this is not the case set these permissions at NTLMSSP and check
the "Replace permissions on existing subkeys" box.

Then select the SECURITY subkey and remove the permission for EVERYONE.
That will leave SYSTEM and Servername\Administrators with Full Control.

Then reboot the server and test your clients.

Hope this helps.

Ralph