The DSN is the shown as the same when compared to another report without sub-reports. The DSN in the 'simple' report doesn't match the DSN in ODBC, but the report runs fine.
I added a second ODBC connection on the report machine that has the same DSN shown in the db info of the report with sub-reports, and points to the same SQL db/server. The report now runs fine in Logicity Desktop and Solution Builder.
Thanks for the help!