Layer's data source is ArcSDE not accessed via a direct connection

ScottNoldy

This is frustrating, several of our mxds, when analyzed in ArcMap 10.0 come back with the error:
10030: Layer's data source is ArcSDE not accessed via a direct connection

We only use direct connect here, there hasn't been an SDE service running since our 9.3.1 days.
Here's the connection info from one of the offending layers (identifying info changed)

Data Type: SDE Feature Class
User: xyz
Instance: SDE:sqlserver:servername\dev
Location: dbname
Version: sde.DEFAULT
Description: Instance default version.
Feature Class: dbname.WEBMERC.HYD_PY_WW_Lake_polygons
Feature Type: Simple
Geometry Type: Polygon

Any thoughts?

WilliamCraft

I've seen this issue before, and there is a knowledge base article but it is for 9.3.1 not 10.0.  Nevertheless, it might not hurt to see if the fix still applies in your case. 

The warning you are seeing can happen when the direct connect connection file created in ArcCatalog has the 'sde' prefix in the instance/service field is entered in uppercase (e.g., "SDE" vs. "sde"). 

To resolve this in 9.3.1, you would need to change the instance/service field in the geodatabase connection properties, making the 'sde' prefix all lowercase.  Following this action, re-add the layers to the MXD using the new geodatabase connection with the correct lowercase 'sde' value; then try to re-analyze.  Note, you should re-add rather than re-path. 

Source: http://support.esri.com/es/knowledgebase/techarticles/detail/36988

This fix could still be valid at 10.0, especially if your SDE connection file or MXD was originally created in 9.3.1. 

Let me know if this resolves your issue.