This is a known issue.  It is caused by the ‘new’ configuration creation script expecting the SQL 2005 Native Client (9.0.4035) database drivers to be installed and ignoring the SQL 2008 Server Native Client driver already installed.

As SQL Server 2008 installs later drivers (10.55.00) only, and StarTeam does not install the 9.0 drivers automatically (unless the the ‘sample’ StarTeam configuration / database is selected at initial installation), there are two options:

• Download and install the specified driver (sqlncli.msi) from the following link Feature Pack for Microsoft SQL Server 2005 - December 2008
• Manually create a blank database for Starteam to use, and manually create a SQL Server Native Client 10.0 DSN for connection

The SQL 2008 Server Native Client (10.0) driver is a fully supported driver for use against StarTeam 2009 R2, in addition to the SQL 2005 Native Client (9.0) driver.

The issue occurs only when creating a ‘new’ configuration without having this driver installed previously.