Thanks Dennis! We were able to do that and it didn't work. So we actually had to change the connection string to connect similar to how a CE device connects. Which made us edit the connection string in the Set Connection Page of the Data-SQL Server VBO (under the No Username Path) to:
""Data Source=""&[Server]& "";Initial Catalog="" & [Database] & "";Integrated Security=SSPI;
User ID=[User];Password=""&[Password]&"";""
We made this a custom object because we need to pass the user data item as a parameter and we had to force the set connection path to connect through the no path despite having a user name passed.
I'm not too clear on how our infrastructure is set up, but we found this solution because one of the many attempts we had, gave us an error: ""The login is from an untrusted domain and cannot be used with windows authentication"" so we figured we'd try a trusted connection setting where we are able to pass the domain as a parameter in the username data item.