Zath, I gave LazSqlX to some friends/colleagues to play with it. Yesterday one of them reported the same problem as you did. I went to his PC to see if I can find something unusual. Windows(7) updates were waiting to be installed (notification bubble). So, I asked him and he agreed to restart his PC, after that I tried again LazSqlx and it could connect to any MsSQL Server we have here. I'm not saying this your case too, but certainly one of 'those' cases. So I still don't know what to do about it.