I realize this is an old question. Maybe this will help someone else trying to solve their Sybase issues.
That said, when building a .Net app, generally you should use the native .Net objects for database access, if available. Sybase does have them available, although they appear to be somewhat difficult to come by. If your organization is using a Sybase database, someone should have access to download the appropriate tools for you from the SAP/Sybase portal. Note this referenced link is the "developer" edition, which may not be suitable for your requirements.
When using a Sybase.Data.AseClient.AseConnection, your connection string might look like this:
Server=MyServer; Port=MyPort; Database=MyDatabase; User ID=MyUserID; Password=MyPassword
Note that you may also need to explicitly set the charset and codepage in your connection string as well:
Charset=ClientDefault;CodePageType=other;clientCharset=iso_1;
See here for details on the charset/codepage.
The above connection string works for me. I had to add the charset part to get it to work outside of my development machine.
Also note the .Net4 object may have memory leak issues. A simple a SQL statement regularly triggered a "Attempted to read or write protected memory" exception for me. Once I switched to the .Net2 object, that error went away. See here.
Unfortunately the overall quality of Sybase drivers appears to be low. I was able to get the ODBC version working on a prior version of the drivers (15.03 I believe), however the .Net2 connection object would always throw what appeared to be a DLL error on instantiation. Now I'm using 15.70, and I have the above memory leak issue with the .Net4 object, but at the moment the .Net2 object is working fine.