[Microsoft][ODBC SQL Server Driver][SQL Server]Login failed for user 'sage300'

We have just upgraded a client from v6.1 to v6.2 PU3. Sage 300 ERP program files and shared data is on a dedicated Win 2012 Std Svr, and so is the SQL 2012 installation. All program installations on the server is done by "Run as Administrator". Users access the system via RDP sessions from a Win Svr 2008 R2 TS. After installation of the v6.2 program files & PU3 we ran W/S Setup on the TS. After the upgrade we are unable to run any SI reports, but get the following error:

"[Microsoft][ODBC SQL Server Driver][SQL Server]Login failed for user 'sage300'. I found a reference to this exact error in this forum stating the Region setting for non-Unicode apps has to be set to English (United States). I have set both servers like that and restarted them, but still the error persists. SI worked perfectly before the upgrade.

Any assistance and/or advice will be greatly appreciated.

Thanks.

Jurgen