I use MSSQL w/ Glassfish and can tell you - this error is coming directly from MSSQL and the problem lies at the very bottom of the chain. I would suggest trying a few things:
1. Try to change the database login to the "sa" account. If this works, the user you've chosen to login via JDBC does not have access to the USERS table.
2. Check the permissions on the USERS table and see if your JDBC login user account has (at least) read access on that table.
3. Try running the query produced by Toplink in Query Analyzer, it may offer more clues.
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