Issue connecting to the database [RESOLVED]

I was trying to install Jet reports express at a customer yesterday and I had an issue connecting to the database. Their details:

Version: NAV 2009 SP1
Database :SQL 2008

In the DATA SOURCE settings:
1. I pointed the Dynamics NAV Client folder to classic, I selected the ENU Language
2. Authentication set to Windows Authentication
3. Server type = MS SQL Server
4. Entered Server name
5. Entered Database name
6. Selected DEFAULT as the NET type (Point 4-6 was copied from the database information in NAV)

I was then expecting to select a company. The drop down box was blank!!
I tried the Test Connection and received an error that the licence file was not present in the finsql.exe folder, I added this and still got the same error.

Please help




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