Windows 7: ODBC connection problem

I'm running 2005 SQL server on Windows 2008 server. I have both Windows 7 and XP ODBC connections to the server. Everything was working fine but the server was running slow so I tried a windows update. The update made my ODBC connection go flakey, but only on Windows 7. Testing the connection would be successful, for several tests, then fail and you would have to reboot the workstation. I have both SQL server and Native Client. Now I am unable to create a connection with either. I've uninstalled the updates which hasn't helped. It seems like the update changed a security setting somewhere. Creating a new connection now fails with SQL state 08001 and server error 10060

Regards Hakit

I have the system working now with both Win 7 and XP Pro but not really happy with the fix. The SQL passwords seem to be stored in a different encryption for these 2 OS's If I change the password on the SQL server then let Win 7 rebuild it the system works ,, but you can't use that login on XP Pro without doing the same thing over again.

Hakit, does your workaround work for users with windows authentication?
IF so can you step me through your method for resetting ?

the odbc connection can not occurs in my system.

Still if you are facing the issue, please see blow resolution:
Root Cause
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The issue which we were seeing on Win7 VDIs could be due to the Network hardware device connected with the machine. If TCP/IP scaling is not supported by the network device then the performance will be slow.

Solution
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Disable auto tuning level of the TCP. Please follow below steps:
1) Open command Prompt with admin right (Run as Admin)
2) Type “netsh interface tcp set global autotuninglevel=disabled”
3) After running above command restart the machine.

For other information on this command, visit link “http://support.microsoft.com/kb/935400”