If the above doesn't work, try making a connection in a UNC Path folder that resides on the ArcGIS Server and register with that connection. (if it only works this way, I believe it has to do the local Admin account that setup AGS)
At Server 10.1 you need to register a database with Server, from Server Manager. It sounds like you've successfully connected to SDE from Catalog, and to your ArcGIS Server from Catalog; but you still need to connect the ArcGIS Server to ArcSDE so that you can publish layers to map services. This means giving the ArcGIS Server account access to the SDE database. Log in to ArcGIS Server Manager, click on Site, then click on Data Stores. Then Register Database.
Sorry I wasn't clearer in my first post, you still need the 32bit client for ArcGIS Desktop to connect to Oracle. Install both the 32bit and 64bit Oracle clients, just make sure the 64bit client is set first in the PATH environment variable. Restart ArcGIS Desktop and Server for the changes to the PATH variable to take effect.Setting up a connection to Oraclehttp://resources.arcgis.com/en/help/main/10.1/index.html#//002n00000038000000 See 1d -"If both ArcGIS for Server and ArcGIS for Desktop are installed on the same Windows computer, set the PATH variable to read the 64-bit client before the 32-bit client."
I uninstalled the Oracle 32-bit client, but now I cannot even connect to the Oracle in ArcCatalog. Any suggestion?
ArcGIS Server 10.1 is a 64bit application so requires a 64bit Oracle client for direct connections.Check to see if your existing Oracle client is 32bit and switch to the 64bit client as required.
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