my advice... dont use MS SQL
its a bit rubbish for System Reporter. Use mySQL instead, it will be better.
Have you followed the guide properly (and btw the usernames do not have to be cliuser and webuser!)
The ODBC setup needs to be the 32bit one (in C:\Windows\SysWOW64\odbcad32.exe) not the default one.
The SQL users logins need to use SQL Server authentication, not Windows. You can see this in the SQL Server Management studio
And actually
enter the values on the SR install page, dont take the prefilled fields.