I've noticed the same problem. You have to first execute a "use database" statement.
So, if I understand your example correctly, you want to change to database '"dbVMS"'.
1. Execute "use dbVMS"
2. change the selection of the Catalog chooser to dbVMS
3. use the refresh button
After that you should be able to work in the database '"dbVMS"'

Take care


Message: 8
Date: Wed, 29 Oct 2008 18:29:06 +0700
From: Reza Mochamad Diannagara <gnureza@gmail.com>
Subject: [Squirrel-sql-users] Accessing another catalog on SQL Server?
To: squirrel-sql-users@lists.sourceforge.net
Message-ID: <49084902.2060203@gmail.com>
Content-Type: text/plain; charset=ISO-8859-1; format=flowed


I've used SQuirreL 2.6.8 and latest jtds jdbc for sql server.
I connected to sql server with this url:
"jdbc:sqlserver://localhost:1433", it's loaded the default db "master".
But when i changed the catalog into another database it show following
"Error: Could not locate entry in sysdatabases for database '"dbVMS"'.
No entry found with that name. Make sure that the name is entered correctly.
SQLState:  S0001
ErrorCode: 911".
And why another database cannot be loaded? how can i load other database?
Btw, i use SQL Server 2000 SP 4. thanks.