Hello,
Upon checking your logs we found the following -
2012-07-26 18:57:47.634 THREAD 23 SEVERE: java.sql.SQLException: Login failed for user ''. The user is not associated with a trusted SQL Server connection.
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2012-07-26 18:57:47.634 THREAD 23 INFO: UpgradeDBUtil: testDBConnection: Exception - Can't connect to database.
2012-07-26 18:57:49.899 THREAD 23 INFO: isUserDBOwner: Couldn't verify sem5 user is db_owner.
2012-07-26 18:57:49.899 THREAD 23 SEVERE: java.sql.SQLException: Login failed for user ''. The user is not associated with a trusted SQL Server connection.
Check the Articles provided below:
"Failed to connect to the database." error when attempting to install Symantec Endpoint Protection Manager 11.x (SEPM) to a Microsoft SQL backend using Windows Authentication.
http://www.symantec.com/docs/TECH122555
"Login failed for user 'username'. The user is not associated with a trusted SQL Server connection" in install_log.err while installing Symantec Endpoint Protection Manager (SEPM) on Microsoft SQL 2005
http://www.symantec.com/docs/TECH90870
About SQL Server database authentication modes http://www.symantec.com/docs/HOWTO55332
About SQL Server configuration settings http://www.symantec.com/docs/HOWTO55330
Hope that helps!!