StoutFiles - 11:40 am on Feb 17, 2010 (gmt 0)
Both pronunciations are fine. However, most examples in English grammar with acronyms call for each letter to be said individually.
S-Q-L will always be a database language. Sequel can be a piece of work that portrays events following those of a previous work. So I prefer S-Q-L. And ta-may-toe.