Hope you don't mind if I make a few little 'tweaks' to your code.

Dave...

#/usr/local/bin/perl -w
#  identity.pl   - MS Sql Server IDENTITY test script
#  Inserts a record, then grabs the IDENTITY value from 
# that insert and displays it

use strict; # ALWAYS use strict (and -w as above)
use Win32::ODBC;

# you will format your own Connect string for the database 
# call
use dbconnect;
$CONNECT = GetConnectString();

my $db='';  # No need for double quotes here

# unless(x) instead of if (!x)
unless ($db = new Win32::ODBC($CONNECT))
{
   $ThisSub = (caller(0))[3];
   $ErrMsg = "$ThisSub: Error connecting to $CONNECT" . "Error: " . $d
+b->Error() . "\n";
   print $ErrMsg;
}

# No need to escape the single quotes here...
my $Sql = "insert into foobs ( FooTitle, FooDesc) values ( 'New Foo', 
+'yet another new foo' )";
if ( $db->sql($Sql) )
{
  print "error on insert\n";   # do something more elegant here
}
else
{
  # If you change the qq to q, then there's no need
  # to escape the @ or the single quotes
  my $Sql = q/ select @@IDENTITY as 'foo' /;
  if ( $db->sql($Sql) )
  {
    print "error on select\n";   # do something more elegant here
  }
  else
  {
      $db->fetchrow();
      %Data = $db->DataHash();
      # No need to quote the hash key foo.
      $foo = $Data{foo};
      print "Indentity for insert is $foo";
  }
}
exit;
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