This is strange:

I'm running MS SQL Server 7.0 and can readily access our other SQL Servers 
using Enterprise Manager and Query Analyzer.  But when I try to connect 
using Web Matrix (SQL Server authentication), it accepts my username and 
password but won't list any of the databases for that server.  I can tell 
that it's validating the password successfully because it will give me an 
error if I put in a bogus password, but the drop-down box will not 
populate with the database names.

If I type in the database I want to connect to, it gives me the 
error, "Unable to connect to database.  The specified database could not 
be found on the server."  I even tried using the IP address instead of the 
server name and still the same error.

Any ideas?

I saw another thread similar to this for SQL 2000 but their solution 
didn't apply to this case.

Thanks.

Here's the answer to this problem, in case anyone else encounters it:

You have to have the latest MDAC installed (2.7 as of this writing).  Once 
I upgraded the MDAC, all was well.

MDAC can be upgraded at:

http://www.microsoft.com/data/download.htm