Hi,
I would recommend that you first create a System DSN manually by going through Control Panel >> Administrator Settings >> ODBC Data Sources. Set it up for a SQL Server connection, and then go back into your registry and see how the connection is divided up into registry keys. Then, go back to your VI and modify it to represent the same structure as you see with the sample SQL Server DSN. The way you currently have it may not work correctly due to the extra settings and keys you have, since it is set up for an Access database. Hope this helps!
Jeremy L.
National Instruments