Hi Todd,
when BTEQ is used in interactive mode you *never* add the password to the ".logon [tdpid/]user", it's always entered after the pw prompt.
".LOGON user,password" is only for batch mode or .RUN FILE
You don't need an entry in the hosts file, but the TDPID must be resolvable using DNS or whatever.
There's an article on this topic:
http://developer.teradata.com/connectivity/articles/logging-on-teradata-...
Dieter
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