Thanks for the suggestions

Finally got if figured out.

Had nothing really to do with SQL.
Under ControlPanel/DataSources(ODBC)/tracing

this traces everything that happens and as I found out with out knowing,
will eat up lots and lots of diskspace and slows any ODBC connection way
down.
by default this writes to "SQL.LOG" on root system partition.

Just have to Stop tracing 
Then restart, then you can delete this file.


Live and learn
Thanks
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