I Did IT!!
The directions for setting up MSSQL with ODBTP appear to be incorrect. Anyway, my problem was the config file for ODBTP. First some background. My moodle site is running on an IIS 6 web server and the database for moodle is running on a seperate Microsoft SQL server. I have PHP 5.1.2 and moodle version 1.7.
The key was the specification of the host servers. In the moodle config.php, I set it up exactly as the directions say. Well, actually, there wasn't an example for the correct database settings for ODBTP but they're the same as the FreeTDS ones. For the dbhost variable, I put in the full hostname of my MS-SQL server.
However, the directions for configuring the odbtp.conf file incorrectly tell you to put the name of your MS-SQL server host in for the "odbtp host" variable. What you need to put in there (oddly enough considering the variable name) is the name of the server where the ODBTP service is running. In my case, it was running on my web server so I had to enter "localhost". Once I did that, everything clicked and it worked great.