I added a few additional options to the SQL Server connection adapter (sqlserver_adapter.rb) in the /vendor/rails/activerecord/lib/ active_record/connection_adapters/ folder. I've also used the updates Ryan Barton added to make the connector work with ActiveScaffold (http://groups.google.com/group/activescaffold/browse_thread/thread/ dc2320dc98064e95/51604a38878792ff?lnk=gst&q=sql +server&rnum=1#51604a38878792ff). The file is posted in the Files section of the ActiveScaffold group (http://groups.google.com/group/ activescaffold/web/sqlserver_adapter.rb).
You can now opt to use integrated security instead of a username and password, like so:
development: adapter: sqlserver database: test_app_development integrated: SSPI # username: user # password: pass host: SQLDBDEV mode: DBI:ADO # Optional; this is hard-coded provider: SQLNCLI # Optional; if blank, defaults to SQLOLEDB
This has been tested with Edge Rails and has worked with everything I've thrown at it, but I don't know about previous Rails versions.