I got it figured out.
It was the SQL server naming convention that Intellitrack didn't like. I was told that I needed to add the port on to the end of the server name.
Example: Sqlservername\instance1, 12345
Recently the database was moved to a new server and this was the new naming convention that I was given. I moved all the existing clients to that server using that naming convention with no problems. When I was trying to install a new client on a new system it would give me this error. I ended up leaving off the ", 12345" and it worked without issue.
Thanks,
Layton