Ok, I've been hammering away at the same issue all day long and here is what I've come up with.
I've installed freetds
I've installed libdbi, the libdbi-driver compiled using the --with-freetds option.
I've installed unixODBC
Here are the relevent config files that I'm using right now
rsyslog.conf
$ModLoad omlibdbi.so
$ActionLibdbiDriver freetds
$ActionLibdbiHost resvasql01
$ActionLibdbiUserName rsyslog
$ActionLibdbiPassword pAssword123
$ActionLibdbiDBName syslog
*.*

mlibdbi:
odbc.ini
[syslog]
Description = MSSQL
Driver = MSSQL
Servername = resvasql01
Server =
Address =
Port = 1433
Database = syslog
TDS_Version = 8.0
Language = us_english
TextSize =
Domain =
PacketSize =
Trace = Yes
TraceFile = /tmp/odbc_tr
odbcinst.ini
[MSSQL]
Description = MS SQL 2005
Driver = /usr/local/lib/libtdsodbc.so
Driver64 =
Setup = /usr/local/lib/libtdsodbc.so.0
Setup64 =
UsageCount = 1
CPTimeout =
CPReuse =
freetds.conf
# A typical Microsoft server
[resvasql01]
host = resvasql01
port = 1433
tds version = 8.0
client charset = UTF-8
Ok, I think that's all of them. I've tested connectivity to the DB using both the tsql command and the isql command, basically testing each part of the setup. Each one is able to make a successful connection in the DB and I am given a prompt to being CLI DB work. When I rsyslog attempts to make the connection I see the following written to the systemlog.
db error (-3): -3: libdbi could not establish a connection
So I started to dig deeper. Fired up wireshark and started sniffing the connection. My rsyslog host is attempting connections to the MS SQL server, but when it sends it's credentials, it's not sending the password causing a failed login. I've checked the TDS7/8 connection packets when using the above mentioned command lines and you see the password getting captured, but when rsyslog attemps the connection a password is simply not sent. Any idea what might be causing this? I'm going to try and poke at this further and see if it's possible to store the connection information within a different part of the actual connection and see if that resolves the issue, but I thought this information might help others with config issues and possible solutions.