When trying to connect to SQL Server using Query Analyzer, you might get this perplexing error:
Unable to connect to server localhost: ODBC: Msg 0, Level 16, State 1
[Microsoft][ODBC SQL Server Driver] Cannot generate SSPI context
This appears to be a problem with the fact that SQL Server really does not like the name ‘localhost’ too much. Using 127.0.0.1 instead will do the job. Similarly, is using just the server’s name instead of the fully qualified domain name may cause a similar problem.