I use jTDS and it works with this configuration:
Code:
<property name="hibernate.dialect" value="org.hibernate.dialect.SQLServerDialect"/>
<property name="hibernate.connection.driver_class" value="net.sourceforge.jtds.jdbc.Driver"/>
<property name="hibernate.connection.username" value="sa"/>
<property name="hibernate.connection.password" value="123"/>
<property name="hibernate.connection.url"
value="jdbc:jtds:sqlserver://localhost/Farzad;TDS=8.0;instance=;bufferMaxMemory=4096"/>
<property name="hibernate.max_fetch_depth" value="3"/>
<property name="hibernate.show_sql" value="true"/>
Your jdbc url is not right and it should look like jdbc:sqlserver://localhost;integratedSecurity=true;
For more information you can see their website at
http://msdn2.microsoft.com/en-us/library/ms378428.aspx
Farzad-