Hi,
Please compare the DSN on Server1 and Server2 and make sure that the authentication mode and other details are identical.
If you are using Windows Authentication with SQL server, we do not specify the user id password in CMC.
To use Windows Authentication with SQL server you have two options.
1. Configure End to End SSO.
2. Have your SIA run on a Domain account and this account should have access to the DB. Along with this the DSN should be configured to use Windows Authentication.
Hope this helps.
Regards
Chinmaya