I am seeing exact same thing, and would love to have some assistance on how to rectify this situation.
I contacted the support team directly by phone, provided exact same information, had them on a call with me and allowed them to see the issues firsthand. After they tried to convince me that my SQL install was incorrect (even though they saw the connection complete successfully), the ball was just dropped with no resolution.
This is something that should be very simple, but as of yet there has been no assistance.
I am working with our in house DBAs and going to use a tool from Microsoft that will help convert the database from MySQL to MSSQL. The only other part that will be a headache is figuring out which file to modify to ensure that ServiceDesk Plus is pointing to the MS SQL server.
Sean Fitzpatrick
Field Asset Services