Database problem with integrated security

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I am running database on SQLserver 2005, I upgraded Mendix to 2.5.5.1 including all steps as per documentation. Created and started new console, then created service. Everything "seems" fine, but when checking log on another issue is see the errormessage below, which is rappidly flooding my log Retrying...(1/3)> > 2011-06-28 11:36:35.984 WARNING - ConnectionBus: Cannot create database connection. 2011-06-28 11:37:00.562 WARNING - ConnectionBus: Database connections: 0 active, 0 idle. 2011-06-28 11:37:00.562 ERROR - ConnectionBus: Opening JDBC connection failed with SQLState: 08S01 Message: This driver is not configured for integrated authentication. Retrying...(1/3) Suggestions ??
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2 answers
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The JDBC driver just can't work with integrated logins. Set up SQL Server authentication http://support.microsoft.com/kb/247931 and http://www.sql-programmers.com/BenefitsofSQL/Security/MixedModeAuthentication.aspx

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First, make sure that in "Configuration Manager" all SQL Server 2005 Services have been started. Then enable TCP/IP-protocol in 'Protocols for SQLEXPRESS'-node under "SQL Server 2005 Networkconfiguration". Also make sure all TCP-portnumbers (properties of TCP/IP-protocol) have been filled out and restart. For more details see: http://blogs.msdn.com/b/sqlexpress/archive/2005/05/05/415084.aspx

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