FreeTDS funcionando, mas o ODBC não pode se conectar

Eu estou tentando executar conectar a um servidor MSSQL de um servidor web Ubuntu 12.04 com FreeTDS e unixODBC.

Usando tsql eu posso conectar ao servidor com

~$ tsql -S dbs3 -U <username> -P <password>

Não há problema aí.

Quando eu tento conectar com o ISQL, no entanto, recebo a seguinte mensagem de erro:

~$ isql -v database3 <username> <password>
[S1000][unixODBC][FreeTDS][SQL Server]Unable to connect to data source
[01000][unixODBC][FreeTDS][SQL Server]Unknown host machine name.
[ISQL]ERROR: Could not SQLConnect

Meus arquivos de configuração são os seguintes:

odbc.ini

[database3]
Driver=FreeTDS
TDS_Version=8.0
Servername=dbs3
Port=1433
Database=benchmark_res

odbcinst.ini

[FreeTDS]
Description=FreeTDS v0.91
Driver=/usr/local/lib/libtdsodbc.so
Setup=/usr/local/lib/libtdsS.so
Trace=Yes
TraceFile=/tmp/freetds.log
ForceTrave=Yes
UsageCount=1

freetds.conf

# This file is installed by FreeTDS if no file by the same
# name is found in the installation directory.
#
# For information about the layout of this file and its settings,
# see the freetds.conf manpage "man freetds.conf".

# Global settings are overridden by those in a database
# server specific section
[global]
    # TDS protocol version
;   tds version = 4.2

    # Whether to write a TDSDUMP file for diagnostic purposes
    # (setting this to /tmp is insecure on a multi-user system)
;   dump file = /tmp/freetds.log
;   debug flags = 0xffff

    # Command and connection timeouts
;   timeout = 10
;   connect timeout = 10

    # If you get out-of-memory errors, it may mean that your client
    # is trying to allocate a huge buffer for a TEXT field.
    # Try setting 'text size' to a more reasonable limit
    text size = 64512

# A typical Sybase server
[egServer50]
    host = symachine.domain.com
    port = 5000
    tds version = 5.0

# A typical Microsoft server
[egServer70]
    host = ntmachine.domain.com
    port = 1433
    tds version = 7.0

[dbs3]
    host = <server-ip>
    port = 1433
    tds version = 8.0

Eu segui o guia de instalação 1.Aqui e 2.Aqui

Por que o isql não está se conectando corretamente?
Meu palpite é que o erro é super óbvio, mas eu sou muito estúpido para ver isso: D

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