An internet search found the below at http://www.expertsforge.com/Applications/Tutorial-133.asp

Reason for the Error:

NotesSQL expects to find Notes.ini in the \Lotus\Notes directory. If the file is not in this directory, the driver may crash when you use the ODBC Data Source Administrator to create a DSN, or the NotesSQL Authentication List Manager may report that it is unable to find a valid version of Notes.

Solution:

If you must place Notes.ini in a directory other than \Lotus\Notes, add the directory to your PATH environment variable.

Example:

If you place the notes.ini in d:otesotes.ini then,

Step 1:

Right Click "My Computer" and Go to "Advanced" tab and click the "Environment Variables" button

Step 2:

Select the "Path" variable under "System Variables" in the "Environment Variables" window and click "Edit"

Step 3:

Add/Append ";d:otes" in the "variable value" text box (dont forget the ";" semicolon, ignore if ";" is already present)

Step 4:

Logoff/Restart the system

Similarly replace the above path to the actual path where your notes.ini is present