Trent, no problem in not using the DT.In a perfect world, adding a SQL instance would be ok, but this client is big on SOX compliancy. Their Oracle datacenter is already compliant and if they introduce a MS SQL component, the auditors devalues the SOX cert for the whole center.
I was told that they are not prepare to certify SOX compliancy on MS SQL yet, because the auditors look at it as a whole. Which means that they would have to look at all applications that use MS SQL in their organization.