Sorry, I assumed since I didn't see that in there, that the suggestion hadn't been applied.
Note that no matter what, you will need to go back to SQL Native Client and MARS_Connection=yes to get things working. The "standard" SQL Server driver won't work.
On looking at your application again:
You have a number of SQL Handles that are non-numeric. I'm not sure precisely what this will do, but it is likely related to the problem. All SQL Handles should be numeric, and numbered from 1-9. The numbers tie the steps together. (so, SQL Statement with handle 1 is what the SQL Fetch with handle 1 gets a row for) I suspect that by using a non-numeric handle, TeleFlow is defaulting them all to a valid number, they same number at that. This could be why you saw little in the way of a change.
Be careful that you don't, for example, use a new SQL Statement step with the same numbered handle as another that you might still wish to run a SQL Fetch for.
Not related, but something I noticed: I see that you don't have Global Event steps set up to indicate what labels TeleFlow should go in the event of a Fatal error or Hang up. These events will still be handled by TeleFlow, but will not necessarily do what you want or expect them to. (I see you have 2 labels, APP_ERROR and APP_HANGUP, that you obviously intend for this purpose, but your application as written will never use them.)
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