In order to assist we need additional information. It might make sense to open a support case at support.quest.com so our support techs can capture all relevant information needed for troubleshooting including:
Can you post the results of a db2level command?
Can you post the results of a list database directory command in the CLP?
Can you catalog databases in the CLP?
Do any existing databases that are cataloged show up in Toad? Can you connect to them?
How many DB2 clients to you have installed?
What DB2 client is specified in Toad via Tools - Options - Database - DB2 - General - DB2 Client?