Symptoms
The following error message is received when you try to configure the Single Sign-On feature in SharePoint Portal Server 2003:
"Failed to connect to the database server"
Cause
This problem occurs if Microsoft Windows Installer version 3.0 or Microsoft Windows Installer version 3.1 is installed on the computer that is running SharePoint Portal Server 2003.
Resolution
The steps to resolve the issue are located in the following Microsoft article:
http://support.microsoft.com/default.aspx?scid=kb;en-us;901203