Same here. The SIM process tries to authenticate to sql via ntlm (the old and unsecure one). In our network ntlmv2 is forced via GPO, so you get these errors (and a lot other on the sql-server).
I tried to set ";useNTLMv2=true;" in the connection string in hpsim-ds.xml - but this does not help. Is there any way to set the sql authentication mechanism to ntlmv2 or (better) kerberos???
This is a serious problem - our security department is not willing to allow ntlm (old) for the sql-server...