1st issue resolved by:
Having a better understanding that both instances are secured, one was secured with windows security and the other with sql server security. Granting the right combination or privs has given me the access I need.
2nd issue resolved by:
1. I removed all entries in the proxy.config file and re-added them. Everything works as expected now, must have been an erroneous character in there somewhere
2. I created a token using the ip address of the proxy server for use in the proxy.config file
3. I re-created the client side token with the referer of the app url
thanks