Normally I'd suggest that you contact Microsoft Premier Support Services (MS-PSS). The problem is that SQL Server 7.0 is now on
Extended Support, which means that it will be expensive.
If you want to pursue additional help here, we can do that, but it means that you're going to need to "open the kimono" pretty wide, exposing a lot of infrastructure details about your server and network that I wouldn't recommend making public. At this point you need to make the call as to whether free support over the internet is worth that exposure, or if you want to pursue paid support.
A normal installation of SQL 7.0 does not have the problems you are experiencing. I've tested this, just to be sure and I can restore a flat binary DB onto a default collation, as well as a rather "kinky" collation that was inherited from a 4.2 upgrade. Something pretty far outside of "standard issue" is causing your problem, and we'll need to dig into your configuraiton one step at a time to find it.
If you do want to pursue this, run the following query on both servers:
Code:
SELECT @@version
EXECUTE sp_helpdb
This will give us the basic breadcrumbs needed to figure out what the next question in the process needs to be.
-PatP