No, SQL2000 spoilt us with its ALTER...SET...WITH ROLLBACK IMMEDIATE|AFTER
In SQL 7 you have to KILL everyone using the database and then do the sp_dboption.
BOL 7.0 confirms that the sysdatabases.status column is 512 for offline and 1024 for read only. However, I'd suggest you identify the state with databaseproperty. (eg. if databaseproperty('mydb', 'isoffline') = 1 or databaseproperty('mydb', 'isreadonly') = 1 ...)