Since it says "Illegal name specified for node: [%1]", my guess is that you have a column named [%1] in your SAP database and the xml parser doesn't like the percent symbol.
If you can change that table name to something without a special character, your problem should be fixed. Otherwise, if you don't need the data from the [%1] column, you can just build a custom query string where you don't select that particular column.
A third possibility may exist with the optional portion of the document's prolog. Scroll down to the section labeled "Telling the parser about your entities" on the link below.
http://www.xml.com/pub/a/2001/01/31/qanda.htmlGood Luck!
Brent