When you are specifying the database settings for report delivery in your System Preferences, please note the following:

Daylite Delivery will only connect to Daylite using a "Daylite administrator" login ID and password. It will not accept "Daylite Admin".

For example, in the Users & Teams pane of Daylite Preferences, the settings for a user who is a Daylite administrator will look like the following.



Also, keep in mind that you should tab out of the password field when you have finished entering your details and only then click the Start button.