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SM-Error occurred when activating Sage Accpac Data Source

Environment:
Accpac 5.6 PU1
SQL 2005
Accpac Installed on SBS 2003
Users connect via Terminal Server 2003 that has WSSetup Installed
This installation has been working for over two (or is it three) years now without issue. Now users are getting the error Error occurred when activating Sage Accpac Data Source whenever they open up any module. I am assuming it is a permissions error because, if the user is in the domain POWER USERS group, they do not get the error. As a temporary work-around, I have put the users in this group, however this is not an ideal solution, and afterall, for years they have been operation without being in the POWER USERS group.

I have searched this forum, Sage forum etc. for solutions. Thusfar I have tried this:
Remove and reinstall WSSetup
Checked paths are ok
Checked permissions on path to server RUNTIME folder
Remove and reinstall MSXML 4 SP2
Deleted and re-created ODBC DSN

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