Hi Stan,
Issue is not with the Installation of SAP Business Objects Data Services 4.1, its regarding rights & security for accessing SQL Server that you applied on "BODSUSER" .
Please refer the below URL for Create a SQL Login User in SQL Server 2008:
Links:
http://www.c-sharpcorner.com/uploadfile/dhananjaycoder/create-a-sql-login-user-in-sql-server-2008/
http://databases.about.com/od/sqlserver/ht/Creating-A-Sql-Server-2008-Database-Account.htm
http://stackoverflow.com/questions/1719399/sql-server-2008-cant-login-with-newly-created-user
Links for Installation & Configuration of SAP Business Objects Data Services:
Note:You can deploy SAP Business Objects Data Services with SAP Business Objects Business Intelligence Or SAP Business Objects Information Platform Services.
Links:
http://sapbods-knowledgeshare.blogspot.com/2012/06/sap-bods-4o-installation.html?zx=ddffaf1b58fc4831
http://guozspace.wordpress.com/2012/04/28/sap-business-objects-bi-4-0-installation-steps/
Hope this will help you as well.
Thanks,
Daya