Installing TaxCut 2007

I can't install TaxCut 2007 from their CD. I get the following message: The Finder cannot complete the operation because some data in TaxCut 2007 could not be read or written. ERROR CODE 36 Anyone got any ideas?

@ Daniel
i already done steps 2-5 except step 1, still cannot connect to db server.
@ Thaga Raj and Daniel,
how to install the Native Client alone? i have the installation CD of mssql2005 standard edition
@ Thaga,
i can successfully PING the DB SERVER, i can even make new folder on the DB SERVER
please guide

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