Hi,
Why dont you check if you can establish connectivity using either encrypted or otherwise, like this;

isql -U<user> -S<server> -P<password> << EOF >> temp.log
select @@servername
go
exit
EOF

grep -c 'Msg' temp.log > /dev/null
if [ $? = 0 ]
then
< not able to log on using password type >
fi

suda