I've found with help from support that while t2l asks for explicit SQL details it then uses integrated login to do the actual work. So if you don't have any account with integrated SQL access, t2l is never going to work. This is seen as a bug, so if you hit the issue or are likely, to, please log it with support?
I'm happy to confirm that an updated version of Test To Live has been made available today to address this. You should be able to re-download it from the same link you were originally provided to get the new version, or contact Support who can send it directly.
Speedy - thanks Stu