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Hyperion Reports unable to connect to HFM

I have a problem with Win32 version of Hyperion Reports 7.2.1.6.
Server: Windows Server 2003
WorkStation: Windows XP Professional [Version 5.1.2600]
HFM server version: 4.0.2.0.967
Reports client version: 7.2.1.6
HFM client version: 4.0.1.0.750
Description of problem: In Reports Win32 client, File>Database Connection Manager>Edit [HFM application] connection, attempt to connect, fails, giving access error,
"Failed to Connect to Server. [Show details] Error connecting to database connection SENAOD: Access is denied"

On the HFM server, the security event log shows rejection of the userID that is in use on the workstation. This ID has no rights on the server. This configuration worked fine, I believe, until a group of Windows patches was applied.
KB954211
KB956390
KB956803
KB956841
KB957095
KB958644
My bet is that at least one of these patches eliminated unauthenticated access to HFM connectivity. My challenge now is to reconfigure HFM and Reports to work under these new Windows security rules. Can anyone help?


More information:
Browser client works fine, Win32 client does not.
Win32 client works fine from server's client installation and from client installation on another server. These servers are all in the same MS Active Directory domain. My conclusion is that success comes because I log into these servers using a valid MSAD ID.
Failure is only on workstations trying to connect to the servers.

Workstation user authentication is LDAP via Novell eDirectory
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