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When setting up a connection to SQL Server, you have the option of choosing Windows authentication mode versus SQL Server authentication.  When authenticating to a SQL Server using SQL Server authentication, you supply a user ID and password that are used to access an account within the SQL environment itself.  When you use integrated Windows authentication, you are accessing the SQL Server using your current Windows account information.  For Windows authentication to work, therefore, you must either be running the SFT client on the same machine as the SQL Server AND the account under which the SFT client was installed must have access to the SQL database, or, you must be authenticating to a domain and your domain credentials must have access to the SQL database.

If you cannot get integrated Windows authentication to work, try switching to SQL Server authentication.