I note you are using XP64. Please supply the ODBC version you are using. If youa re using the correct version, there should be NO configuration of the ODBC driver required.
I am using mysql-connector-odbc-noinstall-3.51.27-winx64
I tried running cmd as an admin (although not sure why this would make a diff as I am already logged in as admin) and ran install 0. It said it installed.
Verified that odbc was set up and connecting to DB still.
I also installed the 32bit version (MSI) with no luck.
FYI I verified that the files were put into the SYS32 not WOW64 folder.
Even MORE frustrating news.... So I couldnt stand it anymore and installed a copy of virtualbox (as my vmware is being stupid) and booted up a 32bit version of xp. Installed framework and the ODBC (32 bit exe version) and installed DCS, that's it!
I was able to connect right away no problems.
I think you may have an issue with 64 bit OS's here. I would be happy to help you further troubleshoot the 64 bit environment further if you ever release a native client.
Still looking for a solution as this virtualox was just temporary.
edit:
Just a note, When I connected via 64 bit to the DB from DCS, it immediately said no database connected.
When I tried to connect via 32 bit, it took a few seconds and gave several status updates and then connected.