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Try starting MS-ACCESS with "Run as administrator" option. That may fix your issue.
Thank you for your reply.
I did not get to try it because after I entered my question, I did a lot more internet Googling.
I found this small comment:
“There's a known issue where you get a 12154 error message running 32 bit software on a 64 bit OS using client 10201, and
It should be resolved by patching the client to 10204, which you do by applying the 10204 database patch to it.”
I searched around for the 10.2.0.4 patch for 10.2.0.1 Oracle 32 bit client.
When I contacted my Oracle DBA to ask if he had that patch, he said that I should try the 11g 32 bit client on the Win 7 64 bit PC.
We have a 10.2.0.4 Oracle database but he said the 11g client should work fine.
I tried it and it solved the problem!
With so many settings, configurations and permissions involved in ODBC, I am inclined to think that I missed a setting but
it was a bug in the 32 bit client 10.2.0.1.