I had a few issues connecting to the DB myself.
It is worth checking the SQL error log for permission errors:
located: C:\Program Files\Microsoft SQL Server\MSSQL.1\MSSQL\LOG\errorlog
The SQLShare does not need to be built it can be any existing share, when setting it should just be the sharename only, not the full UNC path. eg distribution$ (it already knows the server name)
All this does is to open the pipe using Windows Authetication, no data transfer.
So you customsettings.ini will have DB settings like:
[CSettings]
SQLServer=MYSERVERNAME
Instance=DEPLOYMENT
Database=DEPLOYDB
Netlib=DBNMPNTW
SQLShare=distribution$
Table=ComputerSettings
Parameters=UUID, AssetTag, SerialNumber, MacAddress
ParameterCondition=OR
Good luck,
Mike