no system table found in data database

Question

I have an Accounting package that uses a SQL Server database.

To connect to this database I have two options:

1. Windows NT authentication
2. SQL Server authentication

When I use option 2 (SQL Server authentication) with SA user account, the application takes a long time to startup and connect.

When I use option 1 on a workstation the application boots up normally but when I try to connect to the database I get an error NO System table found in database. If I go directly to the server and use the same option (Option 1), it connects with no problem.