Hetero-query betweem iSeries and Access gave ODBC Error "Could not find file 'C:\Documents and Se (4270822)

I create a heterogeneous query using the Query Builder in TDA 3.0.1 between Access and an iSeries database sitting on an AS 400 server. I'm connected via iSeries Access ODBC driver. When I try to execute the query file, I got the following error.

[Microsoft][ODBC Microsoft Access Driver] Could not find file "C:\Documents and Settings\jeellis\My Documents\BI\SQL|Demantra\<database>.MDB'.

Note that <database> is not an Access Database but iSeries. So why is TDA 3.0.1 complaining about a MDB database?

Using TDA 2.7 to create the same heterogeneous query worked.

WORKAROUND: None

STATUS: Waiting for fix in a future release of Toad for Data Analyst