I gave up on using "OLE DB Provider: Microsoft OLE DB Provider for DB2" because I can't seem to get away from the error: "Test connection failed because of an error in "initializing provider. The parameter is incorrect.". Also, these forums (I think) said the IBM one was more reliable than the microsoft one. I'm not sure what to enter under: Data Link Properties. I've tried various combination for 'Initial catalog', 'package collection' and 'default schema' but none of them work. Also, pressing the "Packages" button on the bottom crashes visual studio, so I'm not sure what's supposed to go there.

Need to use the Native OLEDB see if this post help: http://adamjorgensen.wordpress.com/2010/02/20/connecting-to-db2-as400-with-ssis/Arthur My Blog

Thank you Arthur, that was really helpful...

I think you are using the MS drivers and not the IBM dirvers, once you have installed them you would get somehting like: IBM OLEDB provider, on the SSIS connection manager, and this would be inside native OLEDB folder as suggsted by Arthur, subsequelty you need to set up the System DSN, via the catalouge commands and refer the connection needs to be accesed on the conneciton manager somehtig like uncatalog node <node name>; catalog tcpip node <node name> remote <server Name >server <Node Number> uncatalog system odbc data source <DB Name>; uncatalog database <DB Name>; catalog database <DB Name> at node <node name> catalog system odbc data source <DB Name> Your DBA should have all this information for you and this needs to be run via the DB2 command prompt.Abhinav