Would it be possible to daisy chain ODBC connections?

I have a client PC, a terminal server and a machine running SQL (STAGING) SERVER (2005). My client pc see the terminal server and the terminal server sees the SQL SERVER machine.

I tried creating an ODBC source on the Terminal server and trying to connect to that 'SOURCE' from my client PC (like daisy chaining) but it did not work .

My questions:
1. Is this possible?
2. If so how?