Yes I have. And I've run into your problem.
I found that the only successful way to connect was using SQL Server Authentication. Windows NT authentication NEVER works.
This can be a bit of a shock if you are expecting to configure SQL Server with NT Authentication but a reasonable solution is to set it up in mixed mode. Select SQL Server and Windows in the server properties security tab.
Then set up a single SQL Server user for use by your PHP applications and give it appropriate access to your database. Leave any other applications or users to use Windows authentication.
Hope this helps.
Tony