ODBC call for data source failed: . Notify Customer Support.

I am doing the SAP tutorial included with DS 4.0. I am stuck on page 55 - move data from a flat file to a table in an RDBMS.

SAP system -

1 - SAP BO DS ver 4.0 SP2

2 - Some repository on a training server created for me.

(What is this for ? If everything is on my system - flat file and DB, then what is this for ?)

My System -

Windows 7 64bit, SQL server 2008R2

This is what the error is like - ODBC call <SQLDriverConnect> for data source <MyComputer\SQLServer2008R2> failed: <[Microsoft][ODBC SQL Server Driver][DBNETLIB]SQL Server does not exist or access denied.>. Notify Customer Support.

I also attached a photo of the errors which I am facing if that helps.

Please help me to find the reason for the problem and fix it.

Thanks.