Resolution:
1. Check the System Requirements for supported client and server versions:
http://www.quest.com/toad-for-oracle/release-information.aspx
NOTE: Please check release notes for more detail information
2. Verify that your OS user is a Windows Power User and have read/write privileges to the Oracle home directories. Also verify you have read access to the Oracle client folders.
NOTE: In certain environments, you may need to select the Toad shortcut icon | right click and choose “Run as Administrator.”
3. Verify the correct Oracle client is installed on the client machine.
-Toad 11.5 and below only support 32-bit Oracle Clients
-Toad 11.6 and above will support both Oracle 32-bit clients and 64-bit clients (the 11.6 installer version must match the Oracle client)
-Search for the files oci.dll and oraclient*.dll and make sure it exists
- Go into your ORACLE_HOME directory and if you see a lib32 AND lib directory, then you have a 64bit client. If the lib directory is the ONLY one there, then you have a 32bit client
-Connect using Oracle’s SQL*Plus, the banner may also show what Oracle client version you have.
4. For a 64bit Operating System with an 11gR1 Oracle client version and below, install Toad for Oracle into a non (x86) path or Program Files path. A correct path for example would be C:\Quest Software\Toad for Oracle.
5. Verify the Oracle bin directory is at front of the System Variable Path
Right click on My Computer | Properties | Advanced tab | click Environment Variables
-Under System Variables: select Path | click Edit and move the Oracle home bin directory to the front of the entire path including the semicolon.
6. Verify that you using the correct valid Oracle home in Toad for Oracle.
-Under the Installed Clients, click on the ellipses icon to open the Oracle Home Editor and determine the correct Oracle home
-Under the Installed Clients, click on the Connect Using dropdown and select the correct valid Oracle home
See attachment for full documenation and screenshots.
7. Please note, Oracle 12c client is not supported on Windows XP and you may see an OCI.dll connection error in Toad if this matches your environment.