Ended up restoring sql7, removed the application databases with the objective to upgrade only the system DB's resulting in the same error.

My Solution: Removing SQL 7.0, Installing sql 2K w/sp3a....

I think I'll try the fix mentioned in article 300676 even though the error I've recv'd specifies "Update.sql" and NOT "Messages.sql". If my results are still the same (failed). I'll...

Thanks for your help, the article was very helpful.

The article points to a script called "Messages.sql". The erroring displayed in my case is "upgrade.sql". In your opinion would you pursue...