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Go over the normal security areas:
* Validate if your ODBC connection functions correctly to the server. Especially if it's a new one this sometimes causes problems.
* Check if the ODBC connection settings and username combination are correct in Tools/options. If you have multiple environments this occasionally is mixed up.
* Look into tools.log to see what the actual error is. Sometimes Siebel (including tools) doesn't show you the correct error, but displays the last one - not the first one.