unixodbc and freetds setup on OSX and Rails 2.3.x
development:
  adapter: sqlserver
  encoding: UTF8
  mode: odbc
  username: user
  password: passwd
  dsn: MY_DSN

gem 'ruby-odbc', :require => 'odbc_utf8'

[MY_SERVER]
host = host.bla.com
port = 1433
tds version = 8.0
client charset = UTF-8

[MY_DSN]
Driver=/usr/local/lib/libtdsodbc.so
Description=Sql Server Local
Servername=MY_SERVER
Port=1433
Database=my_database

gem install ruby-odbc -- --with-odbc-lib=/usr/local/lib