basho
try setting it to use the same ftp information as the remote info tab.
I get a successful connetion when testing my connection in the testing server definition box set up the way you suggested, but when I go to define the data source within DW, it won't connect. I installed CF developer edition on my PC to try and mirror my server environment but I can't make a local connection to the DB that is similar to my web host environment.
When I open DataAssist wizard, it shows the datbase name but the table and key fields are greyed out