Here are the steps if you want to do this from Eclipse :
1) Create a folder 'sqlauth' in your C: drive, and copy the dll file sqljdbc_auth.dll to the folder
1) Go to Run> Run Configurations
2) Choose the 'Arguments' tab for your class
3) Add the below code in VM arguments:
-Djava.library.path="C:\\sqlauth"
4) Hit 'Apply' and click 'Run'
Feel free to try other methods .