SAP not able to talk to MSSQL Database

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we have a NW 2004s Dual stack ssystem

disp+work is down after few minutes into the SAP tart

when i issue r3trans -d, I get the folloing

4 ETW000 [dev trc ,00000] OpenOledbConnection: line 23715. hr: 0x8000ffff Cannot generate SSPI context

4 ETW000 6176 0.223439

4 ETW000 [dev trc ,00000] sloledb.cpp [OpenOledbConnection,line 23715]: Error/Message: (err -2146893022, sev 0), Cannot generate SSPI context

4 ETW000 31 0.223470

4 ETW000 [dev trc ,00000] Procname: [OpenOledbConnection - no proc] 12 0.223482

4 ETW000 [dev trc ,00000] sloledb.cpp [OpenOledbConnection,line 23715]: Error/Message: (err -2146893022, sev 0), SQL Network Interfaces: The target principal name is incorrect.

4 ETW000 59 0.223541

4 ETW000 [dev trc ,00000] Procname: [OpenOledbConnection - no proc] 12 0.223553

4 ETW000 [dev trc ,00000] sloledb.cpp [OpenOledbConnection,line 23715]: Error/Message: (err 0, sev 0), Invalid connection string attribute

4 ETW000 57 0.223610

4 ETW000 [dev trc ,00000] Procname: [OpenOledbConnection - no proc] 11 0.223621

4 ETW000 [dev trc ,00000] Using Provider SQLNCLI 9173 0.232794

4 ETW000 [dev trc ,00000] OpenOledbConnection: MARS property was set successfully.

DNS and other things are all fine...

service user account also fine

Any thoughts or directions wopuld be appreciated

regards

Kalyan