There is a bug in Talend Open Studio for Data Integration version 5.0.2 when trying to connect to SQL Server without passing a user name and password. Java requires libraries for single signon for this to occur, specifically the ntlmauth.dll file for the system. However, in Talend Open Studio 5.0.2, having this file does not allow single sign on to Microsoft SQL Server. This is confirmed on Microsoft SQL Server 2008 R2 64-bit.
When attempting to connect without supplying a username and password, the following error is received:
This issue is fixed in production release 5.1.1 of Talend Open Studio. A workaround in version 5.0.2 is not available at this time.