Sorry for resurrecting this old thread, but Vladan do you have a BOL or similar reference for this?:
Vladan (5/27/2008)
...Collations with names beginning with "SQL_" cause table scans instead of index seek whenever there is a condition or ORDER BY on a character column... that means on large tables some queries need like 30 seconds instead of under 1 second to execute, not mentioning the huge load it generates on the server. SQL collations are practically useless on SQL2005.
Regards,
Jacob