Make sure you don't have another uncommented line below that one, in config.asp. The error message you got is for an ODBC provider and that string uses an OLEDB one.
I checked and double-checked. No other uncommented strConnString lines. Going in to have a long, hard look at the setup again. Late night brainstorm, see if anything happens.
I started over, copied in a fresh setup.asp, and guess what? take a look at my previous strConnString line above.... notice the missing semicolon at the end?