I finally resolved the issue and wanted to post it so that someone else might benefit.

There appears to a  difference between the way Enterprise Manager 'interfaces' / 'behaves' with the ODBC...

Linda - I tried the server approach at the start. I only moved to my local machine as I can trash it without concern. The server has the same setup,...

A key point on the website I had seen before. DTS can operate multiple threads/processes - and the default is 4 -the majority of Interbase ODBC drivers don't like this at all, to...

Unfortunately no improvement. I tried using both an ODBC connection and an OLE DB connection to Interbase, both failed when scheduled but succeeded when run through SEM.

THe OLE DB connection...

I can only go by my experience but in general packages are sensitive to where they are created - that is not to say they are 'locked' to the...

Correct. Both the SQL Server and the Interbase Server are running locally as services. The Interbase db and the SQL server db are both located on the local drive so...

Yes, Interbase is running as a Service.

I have rebooted, re-installed, tried on 3 different systems - same error. I suspect that the problem is something simple, such as rebooting but at this stage I have exhausted everything...