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 Is it possible to update data in SQL Server with BDC

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As you call it BDC and not BCS i take it you are using SharePoint 2007 (please update tags).

BDC for SP2007/MOSS is read only.

That being said Lightningtools do support update operations so you might consider the article below

http://www.lightningtools.com/bdc-meta-man/business-data-catalog-write-back.aspx

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Not mentioned, but implied by Anders, is that in SharePoint 2010 the BCS (new version of BDC) does allow updates. – Andy Burns Dec 27 '10 at 10:16

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