Just a quick note that I've udpated a previous blog post (http://blogs.msdn.com/b/silverlining/archive/2011/09/14/using-active-record-with-sql-azure.aspx) on connecting to SQL Database from ActiveRecord. It should be current as of 3/12/2013 using Rails 3.2.12, activerecord 3.2.12, activerecord-sqlserver-adapter 3.2.10, ruby-odbc 0.99994 and Ruby 1.9.3p392.