osql Connection

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So, I have SQL 2005 installed and running. I have a 3rd party software
package that connects to it using Windows Auth and everything works great.
Problem is I have another 3rd party software that doesn't use Windows auth
and it can't connect. The user has been setup on the SQL Server. As well
under the Server Properties, and Security I have SQL Server and Windows Auth
Mode selected.

Further, when I try to connect using OSQL -E -S <servername>\MSSQLSERVER I
get the following.
[DBMSLPCN]Invalid connection.
[DBMSLPCN]ConnectionOpen (ParseConnectParams()).

Any ideas? Oh, Shared Memory, Named Pipes and TCP/IP are all enabled.
.

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