sql application role

I'm using an embedded password in a DLL to access SQL. On my machine I can connect to the DB but if i test it using my test user (which hasn't got permissions to the folder where the db is) it fails.

Is this the problem?, and if so how do i get around it?

If your test user doesn't have permissions to the folder where the database resides, it's likely to return a database not found error. What happens when you give permission to the testuser?