SYBASE & BDE/Delphi 4 - connection problems

Hi all,
I am trying to connect to Sybase 11.0.2. using Ct-lib (BDE 5.01/Delphi
4 c/s update #3)

Here is the problem I have:

When I try to connect to a Database I am getting Access Violation in
case I supply incorrect values for user name, password, database
name... I expect BDE/Delphi to raise an exception in this case.

I know something is wrong w/ BDE, because CPU window shows:

<hex addr1> -> cmp dword ptr [edx], $00
<hex addr2>       ...
<hex addr3>       call IDAPI32.@__LockDe{*word*81}Data          

I reinstalled Delphi.... even reinstalled Sybase... nothing works!
Please help