Hi Space Cord,
Are you able to test this in beta?
It's ok if not. I can dig deeper after the break, and I'm logging it as a bug for now, so I don't forget about it. But it's possible this has been fixed already in beta.
Also, I suspect that if you put the connection info into tnsnames.ora and use that instead of a direct connect, then there will be no problem.
Therefore, it appears to be something in the hand-off from Toad.exe to QSR.exe
Sounds like you hit the nail on the head here. Should be an easy fix once I see what's going on.
-John