My action:
Fresh install of Novell VibeonPrem 3 on windows 2008 64 bit (build 6002)
4Gb mem, 3 x RAID 1 config, SQL server version 2008 standard version 10.0.1600.22.

installation actions performed:
pre requisites : Variables and Path settings applied according to manual.
Database setup step: I select Database type: SQL server and use credentials sa en correct password (double checked )

connection error message is thrown ****Unable to verify databse settings. ****
Troubleshoot procedure:
I have checked protocols TCP/IP & shared memory both active.
Firewall rules for SQL ports are configured?

I don not have the SQL client software installed.

Have I missed something?