Study to Determine the Efficacy, Safety, Tolerability & Pharmacokinetics of RO 205-2349 in Patients With Type 2 Diabetes Mellitus

Inclusion Criteria: * Age 35 to 75 * Type 2 diabetes for longer than 3 months * HbA1c (glycosylated hemoglobin A1c) greater than 7.0% at screening * FPG (fasting plasma glucose) greater than 126 mg/dL at screening * BMI (body mass index) less than 40 kg/square meter Exclusion Criteria: * Type I diabetes * Type 2 diabetes patients currently treated with insulin * Type 2 diabetes patients currently or previously treated with Actos, Avandia or Rezulin * FPG (fasting plasma glucose) greater than 270 mg/dL at baseline * Impaired liver or kidney function * Triglycerides greater than 600 mg/dL * Uncontrolled hypertension * Pregnant or lactating women * Women not using adequate contraception