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ODBC Connection To Remote SQL Server

When In the Publisher and we are trying to load the data for the .qvw file the ODBC CONNECT statement fails and an "Error: SQL Error:[Microsoft][ODBC SQL Server Driver] Dialog failed SQL State:IM008" is generated in the log.

We have another application (not QlikView) running on the same machine using the same ODBC DSN and it works fine.

Our client created a test. Here are their results:

The issue, we believe, may be related to the IIS application pool account which is a Network Service account. It may also be something in the set-up of the web application itself; that we are unsure of. What we do know is that IIS is passing the NT AUTHORITY\ANONYMOUS LOGON to SQL Server causing the connection to fail. We tested this theory by creating this account on the SQL side to "fool" IIS and ran the job ForSiteAnaytics (QlikView) successfully.
We can not leave this account with access to the database so we need to find a way to have the application pool, or if it is coming from wthin the app itself, the app, to use a domain account instead of an service account. We tried changing the application pool identity and web services to use domain accounts but then the app would not run at all.
Does anyone have any suggestions?
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Issue has been resolved. Changed the Services for QV Publisher to use a specific login and password.