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Database Authentication Fails when upgrading from 7.x to 8.x

I have upgraded the database and the WHD to 8.00.2 but when I test the installation I get a red X next to Database Authentication. When I reun "Invoke Test" I get "<string xmlns="tempuri.org/.../WebService> <DBAuth>failed</DBAuth> <Error>A database exception occurred.</Error></string>"

Everything appeared to be working fine prior to this. Did I miss something?

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