Trying to connect to SQL Server 2000 or 2005 from Oracle SQL Developer having Windows Authentication enabled on SQL Server will fail with:
“I/O Error: SSO Failed: Native SSPI Library not loaded. Check the java.library.path system property.”
The solution is simple: place a dll called NTLMAUTH.DLL (NT authentication) in your system path and restart SQL Developer. Windows/System32 is always a wise choice.
Where to get this DLL? It is shipped with JTDS here.
Is there another option? Yes, enable SQL Server authentication.