tsql:Adaptive Server connection failed with MinGW Build of FreeTDS 0.83

There was a discussion about a similar topic a few months ago. I can
not see what the conclusion is and wonder if somebody can help me. I
played with different TDS protocol versions, 7.0 and 8.0, when issuing
tsql command. The error and log messages are similar.

>>>> Facts:

Compiler: MinGW + Msys, gcc version 4.2.1
Database: MS SQL Server 2005

>>>> Error from tsql command:

Msg 20017, Level 9, State -1, Server OpenClient, Line -1
Unexpected EOF from the server
Msg 20002, Level 9, State -1, Server OpenClient, Line -1
Adaptive Server Connection failed
There was a problem connecting to the server

>>>> log file:

log.c:196:Starting log file for FreeTDS 0.83.dev.20100720
	on 2010-07-27 22:37:44 with debug flags 0x4fff.
iconv.c:337:tds_iconv_open(003D43A8, 1252)
iconv.c:312:Using trivial iconv
iconv.c:197:local name for ISO-8859-1 is ISO-8859-1
iconv.c:197:local name for UTF-8 is UTF-8
iconv.c:197:local name for UCS-2LE is UCS-2LE
iconv.c:197:local name for UCS-2BE is UCS-2BE
iconv.c:365:setting up conversions for client charset "1252"
iconv.c:367:preparing iconv for "1252" <-> "UCS-2LE" conversion
iconv.c:443:tds_iconv_info_init: client charset name "1252" unrecognized
net.c:225:Connecting to 10.1.0.163 port 1433 (TDS version 7.0)
net.c:281:tds_open_socket: connect(2) returned "WSAEWOULDBLOCK:
Resource temporarily unavailable."
net.c:321:tds_open_socket() succeeded
util.c:156:Changed query state from DEAD to IDLE
login.c:771:quietly sending TDS 7+ login packet
token.c:328:tds_process_login_tokens()
util.c:331:tdserror(003D42A8, 003D43A8, 20017, 0)
util.c:361:tdserror: client library returned TDS_INT_CANCEL(2)
util.c:384:tdserror: returning TDS_INT_CANCEL(2)
util.c:156:Changed query state from IDLE to DEAD
token.c:337:looking for login token, got  0()
token.c:122:tds_process_default_tokens() marker is 0()
token.c:125:leaving tds_process_default_tokens() connection dead
login.c:462:login packet accepted
util.c:331:tdserror(003D42A8, 003D43A8, 20002, 0)
util.c:361:tdserror: client library returned TDS_INT_CANCEL(2)
util.c:384:tdserror: returning TDS_INT_CANCEL(2)
mem.c:615:tds_free_all_results()