Trouble connecting to SQL Server 2005

I get the following error when trying to create a DSN to connect to SQLSVR2005 from Windows XP client to W2K3 Server.

Connection failed:
SQLState: ‘01000’
[Microsoft][ODBC SQL Server Driver][TCP\IP Sockets]ConnectionOpen (SECCreateCredentials()).
Connection failed:
SQLState ‘08001’
SQL Server Error: 18
[Microsoft][ODBC SQL Server Driver][TCP\IP Sockets] SSL Security error

Appreciate any advice to resolve this.