Hi EdenD,
Unfortunately we can not connect to MS-SQL with DAO if wi don't have the ODBC. So, if you want to keep your application with DAO you require ODBC Driver for MS-SQL.(I think that ODBC driver are required for RDO and ADO also.)But still it is not beneficial of using DAO with SQL server.
I recommend that if you are having a medium project(<=50 forms) you should convert it to RDO/ADO.