Best way to connect to SQL Server database.

[StevenK]

I have a Delphi 5 application that works against a SQL Serevr 7.0 database. The method I use for connection at present is to direct all queries/clientdatasets through a single database component. With this database component I set four parameters before connection :
DatabaseName=master
ODBC DSN=ODBCConnectionName
UserName=sa
Password=Password
The connection to "master" is only initial and I then use a query component fed with the syntax 'USE DatabaseName' in order to connect to the database of the users choosing.
Am I better to use an Alias for the database component ?
Do I need the ODBC DSN parameter to be set ?
What is the ideal situation when working against SQL Server databases ?
Thanks in advance.
Steve