BDE Admin 5.01 & SQL 7.0

Need help with  BDE 5.01 and SQL Server 7.0 on new server using ODBC
drivers.  When I attempt to open the database in BDE Admin I get the
following error:

General SQL error.
[Microsoft][ODBC SQL Server Driver][SQL Server]Cannot open database
requested in login  'the database name'.  Login fails.

The error code is 13059 [$33] [$ 3]

I have no problem accessing the database using MS Access 97 as linked
tables.  Also, the identical application is running on a second (older)
server but with SQL 6.0 instead of SQL 7.0.  I've tried everything I can
think of but it's beginning to look like BDE 5.01 just won't work with SQL
7.0.  Can this be true????  Ed.