While configuring DSN using Oracle ODBC driver, one might encounter error "Driver's SQLAllocHandle on SQL_HANDLE_ENV failed". Cause being, Permissions of the remote desktop software did not allow the user access via the remote desktop software.
Do the following to resolve the issue:
1. Select Administration Tools , Local Security Setting and Local Policy.
2. Then select "User Rights Assignment"
3. Double click on "Create Global Objects"
4. Select Add User or Group.
5. Make sure Object Types Group Box is checked.
6. Select Locations and highlight the name of the server you are working on (Not the Domain).
7. Enter "Remote Desktop Users" or "Everyone" (without the quotes) into the Object Names Box.
8. Select OK.
9. Add the same users to the group "Power User".
10. If this does not work, after step 8 a reboot may be required.