SQL error installing HP SIM

I'm installing HP SIM on a machine.  That machine already has SQL on it.  During the install, when I am installing the SQL part, I am on a screen that shows the instance name already there and I am specifying the correct username/password, but I get an error that reads:

Unable to connect to the specified host.  Please check the host database port values and be sure the target database is running.  Also be sure that the target database has the latest service pack installed.

By looking at the event viewer, I can confirm that the port number is 61377 and I can telnet to the local host on that port.  The DB instance that is there was installed when I installed AZURE backup and that's working so I know the DB is up and running.  I cannot however get past this message.

Anyone have any ideas?

Thank you

Who is Participating?
Does the db account have db admin rights on the HPSIM database?
What type of logins are allowed on the SQL server?
I believe need to allow SQL logins as well.
crp0499CEOAuthor Commented:
it's mixed mode.
Vitor MontalvãoMSSQL Senior EngineerCommented:
Can you post the correspondent screen shot?
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