It’s not really that clear, but it’s true, you must have SSO configured on your SharePoint application server or another Microsoft server in order for the BDC to function properly. I’m sure there’s ways around this but I haven’t found any so without further ado let’s see how to do it.

Step 1 - Configure the Microsoft Single Sign On Service

Locate the Microsoft Single Sign On Service (Start > Programs > Administrative Tools > Services)

Set the Single Sign On Service to start automatically

Specify a logon account for the single sign on service

Step 2 - Start the Single Sign On Service

Start the single sign-on service

Step 3 - Configure the Single Sign On Service in SharePoint

Launch your SharePoint Central Administration Console (Start > Programs > Microsoft Office Server > SharePoint 3.0 Central Administration) and select Operations

In the operations window select Manage Settings for Single Sign On under Security Configuration

Select Manage Server Settings

Specify the single sign-on administrative account and the Enterprise Application Definition Administrator Account (BDC) .

Step 4 - Configure the Encryption Key

After starting saving the settings for the Single Sign-On create an encryption key

Select Create Encryption Key (or Manage if you’ve already created one)

Allow SharePoint to re-encrypt even if this is a new key

Step 5 - Get the Office Server SDK

Install the OfficeServerSDK if you haven’t done so already. Note that the SDK does not need to be installed on your server.

Locate and install the BDC Definition editor from the Office SharePoint Server 2007 SDK

Unfortunately the SQL Express edition has to be installed, however, if you let the installer go 1/2 way then select cancel the BDC editor will be installed but the SQL Express will not.

Hint: Click cancel 1/2 through the installation of the software and the express edition won’t install but the proper registry keys are created so that you can install the Application Definition Editor.

Step 6 - Create an Application Definition

Create an application definition using the Business Data Catalog Definition Editor

Connect to a database

Drag a database onto the editor pane and select OK, be sure to specify a title field by selecting one of the columns and selecting true for IsTitleField.

Select the instance for the object imported and provide an SsoApplicationId

Update the AuthenticationMode as PassThrough

BUG ALERT - The BDC Editor has a bug that doesn’t allow it to properly create the finder method (thank you Stefano Demilani for finding this). When you import your application definition as created, you will receive an error stating There are no Business Data types loaded into the catalog when attempting to add a Business Data List to a web part page.

To prevent the bug above from becoming a nightmare expand out your Entities and update the MethodInstanceType to be “Finder” instead of IdEnumerator

Replace “IdEnumerator” with “Finder”

Update the FindAll* method’s RDBCommandText with several columns instead of only the ID field

If you do add addition columns to the FindAll method you will need to add references to these columns in the Reader portion of the FindAll parameters.

Review the metadata created, then when ready right mouse key on a top level LOB application and choose export.

Step 7 - Import the Application Definition

Import the Application Definition into your Shared Service Provider. To locate your Shared Service Provider login to the SharePoint 3.0 Central Administration application and select the Shared Service provider along the left hand side.

Select the BDC manifest

Note: You will need to modify the permissions of this application using the Manage Permissions link above.

Step 8 - Test the Application

Select one of the entities to view its details page

Copy the profile link and paste it into your browser window

Replace the {0} with a valid ID from the database. Take care to use a valid value or you will see an unable to find instance message.

Step 9 - Add a Business Data List web part to a SharePoint Site

Add a business list to a SharePoint site

Note: If you don’t see the Business Data web parts make sure you enable enterprise features for your web application or site collection.

If you see this message please read Step 6 above

After you apply the changes to the Business Data List your data should appear similar to the format below

Step 10 -Modify the web part to include additional columns

If you added additional columns to the FindAll method you can edit the view and add these columns to the view

Modify the web part and select Edit View

Select additional columns and click apply

View the BDC list with multiple columns

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