Symptoms
When you try to connect to MSSQL server over .NET Data Provider you get the error:Format of the initialization string does not conform to specification starting at index {0}
For example: you can can get this error when try to use MSSQL Web Admin or try to Backup/Restore a backup file.
Cause
This is the known Windows problem. It is described here:http://support.microsoft.com/kb/823679/en-us
It caused by inacceptable characters in password for MSSQL user in connection string.