Hi Raj,
I guess you are getting the error might be for the validation query. Validation query should be something which all users will have access to. So SELECT count(*) FROM dbo.sysobjects will not work for all the users or roles. You can use the validation query as "select getdate()". It will work errespective of any user or role. For reference you can check it also.
Data Connection Details for Data server Configuration
Regards,
Suman