You may need to recreate the SQL ODBC connection on your client. The instructions on how to do this are below:
1) Go to Start > Settings > Control Panel > Administrative Tools > Data Sources (ODBC).
2) Go to the System DSN tab.
3) Click "Add".
4) Select SQL Server from the list and click "Finish".
5) Specify the name of the data source as PHAROSReports, select your Pharos Principal Server from the server list and click "Next", overwriting the existing data source.
6) Select the radio button "With SQL server authentication..." and specify the SQL sa Login ID and Password. This is only used for testing the connection.
7) Click "Client Configuration" and confirm that the TCP/IP radio button is selected under "Network libraries", the correct server alias and the server name is specified (the host name of your Pharos Principal Server). Also confirm that "Dynamically determine port" is checked. Click "OK".
8) Click "Next".
9) Check the "Change the default database to" checkbox, select pharos and click "Next" the click "Finish".
10) Click "Test Data Source..." to confirm the connection works, click "OK" and "OK" to exit Data Sources.
Once this is done, test Pharos Reports. If it still fails, in step 7 specify the server IP address instead of the host name for the server alias.