I won't say you have a problem with the connection string, but using a connection defined in ODBC Administrator (thus creating a DSN) makes the LABView code cleaner and more flexible. It should also allow you to verify the DB connection outside of LABView. Once the connection to the DB is verified, if you include the UID and PWD in the ODBC config, you simply pass the DSN to the LV connection VI. I connect to DB's under a variety of DB drivers and have very reliable connections. If the app doesn't connect, it's easy to go back to the ODBC Admin and check what's happening. Rarely is the problem LV related -- something changed for the DB connection.
Happy wiring! Russ