Adding my 2cents

1)DBCC UPDATEUSAGE on each database.

2)change default schema to DBO

3)DBCC FREEPROCCACHE to clear out old query plans.

and also can you ping sybase server from your sql server?

Does this used to work before or is it first time you are trying?

is it IBM iSeries 5.3?

are the system DSN`s same as your boss`s machine and other machine you ran the package.

I have batch file which is first step in my job.If the file exist it will go to next step which is running SSIS package if the file doesn`t exist...

can you look at job history?.any error message there.

if its a named instance try giving port#

is this a default instance or named instance on that server.

1) Change the min and max memory settings accordigly.

2) Check the recovery model of system db`s and check backup jobs.

3) check if you need any sp_configure advanced options.

4) builtin administrators...

you can directly install sp3.You have to do it manually.

Is your Sql server has atleast SP2

http://blog.sqlauthority.com/2008/09/20/sql-server-2008-interview-questions-and-answers-complete-list-download/

When collecting trace..have you specified dbid for only that particular db.

Installation Walkthrough

http://www.sql-server-performance.com/sql_server_training/videos/sql_server_2005_installation.aspx