Crystal Reports Parameter Error

Hey Experts.

I have a stumper--I have created a report that runs as designed. It is apparently connected to the data source successfully. My final task is to add a dropdown list for the parameter. To do this, I edit the parameter, chose a value field, click Action and "Append all database values

The next screen prompts me for my sa password to the database. Even though this is confusing since all the other data for the report populates correctly, I enter the password. The password is not accepted and I cannot continue.

Am I going about this wrong? I need to populate a dropdown menu with all values of that field.