In summary:
Database Server Name = DDF Location Name
Catalog Qualifier = The SQL Catalog Qualifier is the name of the SQL/DS system catalog in which packages are bound. SYSTEM or SYSTEM.<AUTHID> - SYSTEM will return all tables in SQL/DS; SYSTEM.<AUTHID> will return tables created by AUTHID.
If you enter a value in the SQL Catalog Qualifier field, StarSQL uses that value instead of SYSTEM. If you leave the SQL Catalog Qualifier field blank, StarSQL expects to find system catalogs under SYSTEM.
Package Collection = When packages are bound on DB2 MVS, they are recorded in SYSPROGAUTH. Obtain a valid collection name from your database administrator to use for StarSQL to create and bind its packages. If the package doesn't exist, the driver will try to bind it. Use SQLDBA if you want to grant "USE" authority to other AUTHIDs after packages are created.