"Test Linked Server Connection" feature says successful when it is not. (4290042)

"Test Linked Server Connection" feature states successful, but it is not.

Went to Object Explorer | Server Objects tab | Linked Servers and created a linked server.  Tested it with the "Test Linked Server Connection" feature, and everything works fine.

However, after hours trying to find a bug implicating the new linked server, it was realized that there was a typo in the datasource.  Purposely created a bad linked server, and tested it on SQL Server Management Studio and it fails.  But if  tested on Toad, and it says it's successful.