SQL connection string

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SQL-Server

Hi I am using sql server 2008 for my database. I tested the connection using the data link properties with a success. The connection string from the data link properties looks like this

[oledb]
; Everything after this line is an OLE DB initstring
Provider=SQLOLEDB.1;Persist Security Info=False;User ID=DServices;Initial Catalog=MDClone;Data Source=localhost

I run an application as service which connects to this db. In its .config file the connection string looks like this

<connectionStrings>
        <add name="DConnectionString"
              connectionString="Data Source=localhost;Persist Security Info=False;Initial Catalog=MDClone;User Id=DServices;Password=xxx;
              providerName="System.Data.SqlClient"/>
    </connectionStrings>

There is a password which I am hiding for confidentiality.

After I start the service, I looked at the event viewer to find this error.

[ 10] ERROR Monitor.TaskHostHeartbeat.Start: Unexpected error: System.Data.SqlClient.SqlException (0x80131904): Login failed for user 'DServices'.

The same userid and password worked in the data link properties. But not in config file.
Is there something that I am missing.

Thanks in advance.