Recently we ran into this error while applying a patch on DRM 220.127.116.11 (SQl2008, Win2008).
Oracle Hyperion Data Relationship Management
Database Update Manager
Copyright (c) 2011 Oracle Corporation
Exception: A network-related or instance-specific error occurred while establishing a connection to SQL Server. The server was not found or was not accessible.
Verify that the instance name is correct and that SQL Server is configured to allow remote connections. (provider: Named Pipes Provider, error: 40 - Could not open a connection to SQL Server)
Process completed with errors.
Press any key to continue...
namedpipes was indeed disabled on the remote SQL server but tcp/ip was enabled off course.
It took me some time but finally I came to the conclusion that an "@" in the password caused this failure.
Perhaps the way jdbc and DRM construct rthe db string makes the db thinks its username is posted twice.
Removing the "@" from the password in SQL accounts, and changing the password accordingly in the DRM console settings made it all work again. I posted in on support.oracle.com. Let see if they patch this too.