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I have db user account & used it to create a secure store application id and a managed account. I have also given myslef full permissions on the bdc service & bdc metadata store. I have no problem connecting using a sql server management studio but any type of connection I make to the datasource on the sql server via SPD gets denied.

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since you have provided a lot of general information about your steps below, I think you will need to add in the specific steps and specific screenshots of error messages next for further assistance (i.e., the exact form of the user name you are entering in into the Secure Store application, the exact form of the username for SQL Serverm etc). – lwbecker2 Mar 22 '14 at 15:00
Additional information about your farm set up (and SahrePoint version) would be useful too. Are you using multiple servers or a single server? – lwbecker2 Mar 22 '14 at 15:02

Try this... it's work perfectly.

Create Secure store App ID (In Central Admin)

  1. Create secure store application id.(select Group) and give rights

  2. Set credential(Give username and password) and permission. (for eg. testusername, testpassword)

Manage BDC Service (In Central Admin)

  1. Click on Business data connectivity services.

  2. Set metadata store permission. And give rights.

Configure SQL Server

  1. create new user and give rights.
  2. Apply username and password. (for eg. testusername, testpassword)
  3. Add this user to database. So it can access perticular database

Sharepoint Designer

  1. Create new external content type.
  2. Add connection to SQL Server.
  3. Set Sql Server name and database name.
  4. Select Custom impersonated identity and apply secure store application id.
  5. Click ok.
  6. Apply username and password. (for eg. testusername, testpassword)
  7. Done.
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That works until I click ok on the external content type. I end up getting errors that the domain login name is incorrect, but its not. – user13186 Dec 18 '12 at 14:06
Also Sharepoint Designer, if I got to 'Data Source' ,add data connection, enter information.. I get denied. Same info using sql server it works – user13186 Dec 18 '12 at 14:37

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