Reset your Toad user files to resolve this issue. Here are the steps.
NOTE: Please try not to leave TSS running overnight or force close TSS as these can cause user files corruption or damage.
1) Fully exit Toad for SQL Server (TSS).
2) Go to:
XP: C:\Documents and Settings\<YOUR_USER>\Application Data\Quest Software\
Vista or 7: C:\Users\<YOUR_USER>\AppData\Roaming\Quest Software\
3) Rename the “Toad for SQL Server 5.x” folder to “Toad for SQL Server 5.x OLD”.
4) Start TSS.
5) When asked if you want to ‘migrate’ settings from previous versions, choose CANCEL.
6) Check and ensure that your Toad has been reset to factory defaults.
NOTE: If you would like to transfer back your Saved Connections from the log-in screen, see the steps below. IMPORTANT: Re-test the issue first before performing these steps.
1) Fully exit TSS again.
2) Go to the OLD “Toad for SQL Server 5.x OLD” folder you renamed in Step 3 above.
3) Perform a Copy on the “Connections.xml” file (make a backup of this file just in case of errors).
4) Go to the NEW “Toad for SQL Server 5.x” folder that was just created by TSS.
5) Paste the “Connections.xml” file in there.
6) Start TSS and you should now have your previous Saved Connections in the log-in screen.