With the JTDS JDBC driver that comes with Railo, it is possible, given that Railo in running on a Windows Server, to user a Windows Domain account to authenicate a database connection - all you need to do is add domain= to the connection string

    this.datasources['TEST1']={
         class:'net.sourceforge.jtds.jdbc.Driver'
        ,connectionString:'jdbc:jtds:sqlserver://SQLA01:1433/TEST;domain=myDomain;'
        ,username="myUsername"
        ,password="myPassword"
    };

You can also not pass usesername and password, and it will use the windows account that is running the Railo server. However, this requires ntlmauth.dll to be saved to c:\windows\system32. You will have to restart Railo service to pick this up.