No I have not opened a ticket with Dell yet and yes that is the error I'm receiving.
Again, I have shown that Toad is configure for DB2 10.1.0.
The reason I also show the ODBC screenshot is to show that I don't have DB2 9.7.4 on my machine. This is a fresh build and has never had 9.7 installed. The only DB2 client installed is 10.1.