Hi Peter,
CR needs a 32-bit ODBC DSN to be able to connect to the database.
The 32-bit ODBC Admin is here:
C:/Windows/syswow64/odbcad32.exe
Since this is a SQL Server database, make sure you have the SQL Server Native Client 11.0 or 10.0 driver installed.
Also, have you tried connecting via OLEDB?
-Abhilash