Erro de conexÃo com sql server 2005 e ireport 3.7.2

Olá pessoal

Estou tentando fazer a conexão de um banco de dados SQL SERVER 2005 com o IReport versão 3.7.2, porém não estou conseguindo. Se alguém passou pelo mesmo problema ou sabe como resolver eu agradeço. Estou usando o IReport 3.7.2 e Windows 7:

Segue abaixo a configuração para fazer a conexão com o SQL SERVER 2005:

JDBC Driver: MS SQL Server(net.sourceforge.jtds.jdbc.Driver)
JDBC URL : jdbc:jtds:sqlserver://localhost/teste
JDBC URL Wizard
Server Address: localhost
Database: teste
Username: sa
Password : *******

Quando clico em Test, apresenta a seguinte mensagem:

SQL problems: Network error IOException: refused:
connect
jdbc:jtds:sqlserver://localhost/teste

Detalhes:
Exception

Message:
java.sql.SQLException: Network error IOException: Connection refused: connect
Level:
SEVERE
Stack Trace:
Network error IOException: Connection refused: connect
net.sourceforge.jtds.jdbc.ConnectionJDBC2.(ConnectionJDBC2.java:410)
net.sourceforge.jtds.jdbc.ConnectionJDBC3.(ConnectionJDBC3.java:50)
net.sourceforge.jtds.jdbc.Driver.connect(Driver.java:184)
com.jaspersoft.ireport.designer.connection.JDBCConnection.getConnection(JDBCConnection.java:140)
com.jaspersoft.ireport.designer.connection.JDBCConnection.test(JDBCConnection.java:447)
com.jaspersoft.ireport.designer.connection.gui.ConnectionDialog.jButtonTestActionPerformed(ConnectionDialog.java:335)
com.jaspersoft.ireport.designer.connection.gui.ConnectionDialog.access$300(ConnectionDialog.java:43)
com.jaspersoft.ireport.designer.connection.gui.ConnectionDialog$4.actionPerformed(ConnectionDialog.java:290)
javax.swing.AbstractButton.fireActionPerformed(Unknown Source)
javax.swing.AbstractButton$Handler.actionPerformed(Unknown Source)
javax.swing.DefaultButtonModel.fireActionPerformed(Unknown Source)
javax.swing.DefaultButtonModel.setPressed(Unknown Source)
javax.swing.plaf.basic.BasicButtonListener.mouseReleased(Unknown Source)
java.awt.Component.processMouseEvent(Unknown Source)
javax.swing.JComponent.processMouseEvent(Unknown Source)
java.awt.Component.processEvent(Unknown Source)
java.awt.Container.processEvent(Unknown Source)
java.awt.Component.dispatchEventImpl(Unknown Source)
java.awt.Container.dispatchEventImpl(Unknown Source)
java.awt.Component.dispatchEvent(Unknown Source)
java.awt.LightweightDispatcher.retargetMouseEvent(Unknown Source)
java.awt.LightweightDispatcher.processMouseEvent(Unknown Source)
java.awt.LightweightDispatcher.dispatchEvent(Unknown Source)
java.awt.Container.dispatchEventImpl(Unknown Source)
java.awt.Window.dispatchEventImpl(Unknown Source)
java.awt.Component.dispatchEvent(Unknown Source)
java.awt.EventQueue.dispatchEvent(Unknown Source)
org.netbeans.core.TimableEventQueue.dispatchEvent(TimableEventQueue.java:104)
java.awt.EventDispatchThread.pumpOneEventForFilters(Unknown Source)
java.awt.EventDispatchThread.pumpEventsForFilter(Unknown Source)
java.awt.EventDispatchThread.pumpEventsForFilter(Unknown Source)
java.awt.Dialog$1.run(Unknown Source)
java.awt.Dialog$3.run(Unknown Source)
java.security.AccessController.doPrivileged(Native Method)
java.awt.Dialog.show(Unknown Source)
java.awt.Component.show(Unknown Source)
java.awt.Component.setVisible(Unknown Source)
java.awt.Window.setVisible(Unknown Source)
java.awt.Dialog.setVisible(Unknown Source)
com.jaspersoft.ireport.designer.welcome.QuickStartPanel.jButton1ActionPerformed(QuickStartPanel.java:295)
com.jaspersoft.ireport.designer.welcome.QuickStartPanel.access$200(QuickStartPanel.java:50)
com.jaspersoft.ireport.designer.welcome.QuickStartPanel$2.actionPerformed(QuickStartPanel.java:124)
javax.swing.AbstractButton.fireActionPerformed(Unknown Source)
javax.swing.AbstractButton$Handler.actionPerformed(Unknown Source)
javax.swing.DefaultButtonModel.fireActionPerformed(Unknown Source)
javax.swing.DefaultButtonModel.setPressed(Unknown Source)
javax.swing.plaf.basic.BasicButtonListener.mouseReleased(Unknown Source)
java.awt.AWTEventMulticaster.mouseReleased(Unknown Source)
java.awt.Component.processMouseEvent(Unknown Source)
javax.swing.JComponent.processMouseEvent(Unknown Source)
java.awt.Component.processEvent(Unknown Source)
java.awt.Container.processEvent(Unknown Source)
java.awt.Component.dispatchEventImpl(Unknown Source)
java.awt.Container.dispatchEventImpl(Unknown Source)
java.awt.Component.dispatchEvent(Unknown Source)
java.awt.LightweightDispatcher.retargetMouseEvent(Unknown Source)
java.awt.LightweightDispatcher.processMouseEvent(Unknown Source)
java.awt.LightweightDispatcher.dispatchEvent(Unknown Source)
java.awt.Container.dispatchEventImpl(Unknown Source)
java.awt.Window.dispatchEventImpl(Unknown Source)
java.awt.Component.dispatchEvent(Unknown Source)
java.awt.EventQueue.dispatchEvent(Unknown Source)
org.netbeans.core.TimableEventQueue.dispatchEvent(TimableEventQueue.java:104)
java.awt.EventDispatchThread.pumpOneEventForFilters(Unknown Source)
java.awt.EventDispatchThread.pumpEventsForFilter(Unknown Source)
java.awt.EventDispatchThread.pumpEventsForHierarchy(Unknown Source)
java.awt.EventDispatchThread.pumpEvents(Unknown Source)
java.awt.EventDispatchThread.pumpEvents(Unknown Source)
java.awt.EventDispatchThread.run(Unknown Source)
Connection refused: connect
java.net.PlainSocketImpl.socketConnect(Native Method)
java.net.PlainSocketImpl.doConnect(Unknown Source)
java.net.PlainSocketImpl.connectToAddress(Unknown Source)
java.net.PlainSocketImpl.connect(Unknown Source)
java.net.SocksSocketImpl.connect(Unknown Source)
java.net.Socket.connect(Unknown Source)
sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method)
sun.reflect.NativeMethodAccessorImpl.invoke(Unknown Source)
sun.reflect.DelegatingMethodAccessorImpl.invoke(Unknown Source)
java.lang.reflect.Method.invoke(Unknown Source)
net.sourceforge.jtds.jdbc.SharedSocket.createSocketForJDBC3(SharedSocket.java:307)
net.sourceforge.jtds.jdbc.SharedSocket.(SharedSocket.java:257)
net.sourceforge.jtds.jdbc.ConnectionJDBC2.(ConnectionJDBC2.java:311)
net.sourceforge.jtds.jdbc.ConnectionJDBC3.(ConnectionJDBC3.java:50)
net.sourceforge.jtds.jdbc.Driver.connect(Driver.java:184)
com.jaspersoft.ireport.designer.connection.JDBCConnection.getConnection(JDBCConnection.java:140)
com.jaspersoft.ireport.designer.connection.JDBCConnection.test(JDBCConnection.java:447)
com.jaspersoft.ireport.designer.connection.gui.ConnectionDialog.jButtonTestActionPerformed(ConnectionDialog.java:335)
com.jaspersoft.ireport.designer.connection.gui.ConnectionDialog.access$300(ConnectionDialog.java:43)
com.jaspersoft.ireport.designer.connection.gui.ConnectionDialog$4.actionPerformed(ConnectionDialog.java:290)
javax.swing.AbstractButton.fireActionPerformed(Unknown Source)
javax.swing.AbstractButton$Handler.actionPerformed(Unknown Source)
javax.swing.DefaultButtonModel.fireActionPerformed(Unknown Source)
javax.swing.DefaultButtonModel.setPressed(Unknown Source)
javax.swing.plaf.basic.BasicButtonListener.mouseReleased(Unknown Source)
java.awt.Component.processMouseEvent(Unknown Source)
javax.swing.JComponent.processMouseEvent(Unknown Source)
java.awt.Component.processEvent(Unknown Source)
java.awt.Container.processEvent(Unknown Source)
java.awt.Component.dispatchEventImpl(Unknown Source)
java.awt.Container.dispatchEventImpl(Unknown Source)
java.awt.Component.dispatchEvent(Unknown Source)
java.awt.LightweightDispatcher.retargetMouseEvent(Unknown Source)
java.awt.LightweightDispatcher.processMouseEvent(Unknown Source)
java.awt.LightweightDispatcher.dispatchEvent(Unknown Source)
java.awt.Container.dispatchEventImpl(Unknown Source)
java.awt.Window.dispatchEventImpl(Unknown Source)
java.awt.Component.dispatchEvent(Unknown Source)
java.awt.EventQueue.dispatchEvent(Unknown Source)
org.netbeans.core.TimableEventQueue.dispatchEvent(TimableEventQueue.java:104)
java.awt.EventDispatchThread.pumpOneEventForFilters(Unknown Source)
java.awt.EventDispatchThread.pumpEventsForFilter(Unknown Source)
java.awt.EventDispatchThread.pumpEventsForFilter(Unknown Source)
java.awt.Dialog$1.run(Unknown Source)
java.awt.Dialog$3.run(Unknown Source)
java.security.AccessController.doPrivileged(Native Method)
java.awt.Dialog.show(Unknown Source)
java.awt.Component.show(Unknown Source)
java.awt.Component.setVisible(Unknown Source)
java.awt.Window.setVisible(Unknown Source)
java.awt.Dialog.setVisible(Unknown Source)
com.jaspersoft.ireport.designer.welcome.QuickStartPanel.jButton1ActionPerformed(QuickStartPanel.java:295)
com.jaspersoft.ireport.designer.welcome.QuickStartPanel.access$200(QuickStartPanel.java:50)
com.jaspersoft.ireport.designer.welcome.QuickStartPanel$2.actionPerformed(QuickStartPanel.java:124)
javax.swing.AbstractButton.fireActionPerformed(Unknown Source)
javax.swing.AbstractButton$Handler.actionPerformed(Unknown Source)
javax.swing.DefaultButtonModel.fireActionPerformed(Unknown Source)
javax.swing.DefaultButtonModel.setPressed(Unknown Source)
javax.swing.plaf.basic.BasicButtonListener.mouseReleased(Unknown Source)
java.awt.AWTEventMulticaster.mouseReleased(Unknown Source)
java.awt.Component.processMouseEvent(Unknown Source)
javax.swing.JComponent.processMouseEvent(Unknown Source)
java.awt.Component.processEvent(Unknown Source)
java.awt.Container.processEvent(Unknown Source)
java.awt.Component.dispatchEventImpl(Unknown Source)
java.awt.Container.dispatchEventImpl(Unknown Source)
java.awt.Component.dispatchEvent(Unknown Source)
java.awt.LightweightDispatcher.retargetMouseEvent(Unknown Source)
java.awt.LightweightDispatcher.processMouseEvent(Unknown Source)
java.awt.LightweightDispatcher.dispatchEvent(Unknown Source)
java.awt.Container.dispatchEventImpl(Unknown Source)
java.awt.Window.dispatchEventImpl(Unknown Source)
java.awt.Component.dispatchEvent(Unknown Source)
java.awt.EventQueue.dispatchEvent(Unknown Source)
org.netbeans.core.TimableEventQueue.dispatchEvent(TimableEventQueue.java:104)
java.awt.EventDispatchThread.pumpOneEventForFilters(Unknown Source)
java.awt.EventDispatchThread.pumpEventsForFilter(Unknown Source)
java.awt.EventDispatchThread.pumpEventsForHierarchy(Unknown Source)
java.awt.EventDispatchThread.pumpEvents(Unknown Source)
java.awt.EventDispatchThread.pumpEvents(Unknown Source)
java.awt.EventDispatchThread.run(Unknown Source)