We have 10.1 Desktop installed and we are trying to connect to a 9.3.1 SDE server backed by postgres. The Add Data>Database Connections>Add Database Connection fails with a "Failed to connect to database. ...database client software failed to load..." error. When we use the toolbox to make a connection file and specify an ArcSDE Service connection on port 5151, things work just fine, but with student users, managing connection (*.sde) files is a real problem. (Desktop 10.0 connects just fine with either method.)
The problem seems to be with direct connections from Desktop 10.1 to Postgres... Because via the "Add Data..." method there is no service field and no differentiation between direct and service connections in the form, then I conclude that this form is for direct connections only. Please correct me if I have misinterpreted things, otherwise thanks a lot esri for no warning about this push towards direct connections only.
Oh yes, postgres is listening on the default port, 5432, (specifying the port in the "Instance:" field makes no difference) and our postgres accepts connections from the outside world.
Any help appreciated.
-Howard