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I am running Windows Small Business Server 2012 (Windows 2008R2 OS) with SQL Server 2008R2 running on the server.

I have one XP client PC and 1 Windows 7 client PC.

Problem:

Only occurs on the Windows 7 Client PC, not on the XP Client PC.

When I first try to connect to SQL Server via a program (Ex: Excel 2010 > Data > From Other Sources > From SQL Server and some other application programs) the programs wait for approximately 20 seconds and then displays the message 'Login timeout expired'. When I click on the OK Button and try again the connection is made immediately without a problem.

I have tried turning off the Antivirus program and the Windows Firewall on the Windows 7 Client PC but the problem still occurs.

IN SSMS Server Properties > Connections > Remote server connections > Allow remote connections to this server is checked.

Remote query timeout (in seconds, 0 = no timeout) the value is 600.

SQL Server Configuration Manager has the following protocols enabled in the following order:

Share Memory, TCI/IP, Named Pipes.

I tried changing the order to Shared Memory, Named Pipes, TCP/IP, restarting SQL Server Services and the problem still existed.

I tried disabling Shared Memory and the problem still existed.

If I turn off UAC (User Account Control) on the Windows 7 Client PC the problem goes away. However, this is not a good solution as I have clients that run my application software and will not want to turn this security feature.

Oddly enough, when I stopped the Windows Firewall Service on the Server and then ran Excel again I got the error [DBNETLIB] ConnectionOpen (Connect()) SQL Server does not exist or access is denied.

Any suggestions on how to resolve this problem other than turning off UAC on the Client PC will be greatly appreciated as I have run out of ideas.