This is two part questions:
Does SharePoint 2010 support Trusted_Connection(Integrated Security=Yes;) when connecting to SQL Servers 2008/2012 for retrieving custom list?
If it does how can I set it up?
Currently I tried to go to Data Sources, clicked on new Database Connection. Selected "User custom connection string" inserted connection string in the following format
Data Source=ServerName;Initial Catalog=databaseName;Integrated Security=Yes;
I get the same error message with all the different combinations.
"Server Error: An error occured while retrieving the list of Databases from ServerName: The server for the data source returned a non-specific error when trying to execute your query. Check the format and content of your query and thy again. If the problem persists, contact the server administrator."
note: I do not want/can not use SQL Authentication so don't even suggest it.