According to the pyodbc's connection strings
info: http://code.google.com/p/pyodbc/wiki/ConnectionStrings you will
probably have to use a different driver than FreeTDS, since that's a
*nix-only driver (I think). Microsoft has their own driver you can use on
Windows machines.
Can you manually connect to MSSQL from a Python console session?
>>> import pyodbc
>>> conn = pyodbc.connect("DRIVER=SQL
Server};SERVER=dns_or_ip_of_server;UID=username;PWD=password;DATABASE=database_name")
If you can, then you will probably need to update your DAL initialization
with the name "SQL Server" for DRIVER.