I have been looking to get my rails program to gain access to a current sql express server set on another machine at the office. I have adopted these instructions: GitHub and hang up my database.yml such as this:

development:  
adapter: sqlserver  
mode: odbc  
dns: Provider=SQLOLEDB;Data Source=MACHINENAME\SQLEXPRESS;UID=xxxx;PWD=xxxxx;Application Name=atlas  
timeout: 5000

Now after i attempt to run script/console (or server or whatever) I recieve this error:

/var/lib/gems/1.8/gems/activesupport-2.3.8/lib/active_support/dependencies.rb:440:in `load_missing_constant':NameError: uninitialized constant ActiveRecord::WrappedDatabaseException  

I have attempted searching and altering configurations backwards and forwards but i have show up blank. Shall We Be Held doing something awfully wrong or what?

BR,
SG

I'm able to only speak for implementing Rails 3..3 with SQLServer 2005, so Hopefully can help you a little.

I have added this to my Gemfile:

gem 'ruby-odbc', '0.99991', :require => 'odbc'
gem 'activerecord-sqlserver-adapter', :branch => "arel2",
  :git => "git://github.com/rails-sqlserver/activerecord-sqlserver-adapter"

And employ this during my config/database.yml:

test:
  adapter: sqlserver
  mode: ODBC
  dsn: my_app_test
  username: [USERNAME]
  password: [PASSWORD]

The DSN is set up elsewhere, but it's in nowhere as complex as yours. I adopted these instructions: http://github.com/rails-sqlserver/activerecord-sqlserver-adapter/wiki/Platform-Installation---Ubuntu