OK, so here’s what solved my problems:
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Download latest MSSQL JDBC driver from here:
http://msdn.microsoft.com/en-us/sqlserver/aa937724.aspx -
Referenced the 2 JAR files in my project:
sqljdbc.jar and
sqljdbc4.jar (I’m not yet sure if both of the above are required or just one..) -
Make sure the SQL Server Browser windows service is running
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Open SQL Server Configuration Manager and go to Protocols for SQLEXPRESS under SQL Server Network Configuration. Right-click on TCP/IP and choose Properties. Set Enabled = YES.
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While you’re there, click on IP Addresses tab and find the section IP All. Set TCP Port to 1433.
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Add sqljdbc_auth.dll to your PATH Environment Variable. In my case: D:\Java\sqljdbc_4.0\enu\auth\x64
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Copy the sqljdbc_auth.dll to your JDK directory. In my case: C:\Program Files\Java\jdk1.7.0_04\bin
I hope this helps someone.