Hi John,
In this setup where is the sql.ini file located? Is it part of the deployment files? I think one way you have to troubleshoot is to maybe use a network sniffer like wire shark from the local machine, and setup to track TCP/TDS packets between it and the ASE host.
Possible to also sniffer between machine with network drive and your local machine.
In dsedit you've tried the ping command there as well? Can you show us what your connection string looks like?
Cheers,
-Paul