You are better having a full path to the driver in the odbcinst.ini file as it will only work if your relative path is correct for the directory you are in.
I don't use the ODBC driver you are using as the company I work for wrote its own SQL Server ODBC Driver. The error is saying the ODBC driver manager attempted to call SQLAllocHandle to allocate an environment and the driver returned the error IM004. This is almost always the very first call an ODBC application will make. Your driver probably needs something set in your shell environment e.g., an environment variable - but that is just a guess as I don't use that ODBC driver (what does the driver documentation say).
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