We have SQL Server 2000 with QODBC as a linked server.  The linked server shows the tables, and appears to be connected properly.  I can create a QODBC connection and run queries in DTS packages, but I get the following error when using SQL Query Analyzer:

SELECT * FROM OPENQUERY(QODBC,'SELECT ListID, Name FROM Customer')

Server: Msg 7399, Level 16, State 1, Line 1
OLE DB provider 'MSDASQL' reported an error. 
[OLE/DB provider returned message: [QODBC] Error]
OLE DB error trace [OLE/DB Provider 'MSDASQL' IRowset::GetNextRows returned 0x80004005:   ].

Also, The VB Demo runs fine...any ideas?

The SQL Query Analyzer appears to be running as a Windows Service. Do you have a Server Edition of QODBC and are the QODBC DCOM Servers running?

See: Does QODBC work with MS SQL Server Linked Tables? for more.