I seem stuck with this issue. I am configuring SCCM 2012. For DB, I am using SQL 2008 R2 SP3 running on WIn 2008 R2.
Well, it goes through the install process ok until it gets to the part where it needs to connect to the SQL DB. That is when I get this error. Please see attached file.
I have updated the server pack to, patched the server, rebooted, etc. However, the problem persists. So if anyone has seen this issue before and has a resolution, please be kind and share the fix.