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Do you have tnsnames.ora configured in both homes? By default homes are unaware of each other, so you probably just need to copy tnsnames.ora over from the full client home into the Instant Client home. Or, at least, make sure they both have the same information in them.
Hope it helps,
As you deduced, I had installed them in different homes and the 'ODBC home' needed updating with the same tnsnames.ora file as the 'net manager' home.
It now works OK.