Dreamweaver cannot connect to ODBC DSN but published pages work

I have a web server that I have been developing on for almost three years. Recently it stopped allowing me to connect to the testing servers DSNs. I open the Application Tab, Click on the plus sign to add a Data Source Name and then tell it to use the testing servers DSNs. At the select ODBC DSN dialoge box, It tries to connect and I get the message "HTTP Error Code 401 Unauthorized" right as the activity dialog box says "loading Databse Schema". I can connect VIA FTP no problem. The pages are all working, connecting and reading/updating properly.  I have rearched this everywhere but with no conclusive answer.
Here are some other factors to consider.  The webserver was part of one company's network and when that company was sold it was moved to another location. So now we add:
1) I Used to connect thru a "local/network"  VIA a mapped drive to the Web Server. I now must use FTP.
2) The machine has been moved to another location and is bacially not part of any domain, although it still thinks it is.  (computer-> properties-> computer name - still points to the old domain.)

However, this problem existed before the above mentioned issues came into play.
I suspect it is some kind of permissions problem but have no clue weher to look.