If select into clause is used into transactions till the transaction commits sysobjects table can not acceses directly.
It can be accessed only with 'nolock' hint.

/*
To verify how blocking occurs I have create these three baches
1st batch is starting a transaction, creating a table, performing select into operation
and waiting for 1 minute( this waiting time could be used for other selects or updates)
2nd batch is the query on sysobjects table
3rd batch is the query on sysobjects table with (nolock) option
How to run:
1. Open three query analyzer windows.
2. Copy and paste each batch in seperate windows.
3. fire all the three baches simultanously started with 1st batch.
Check sp_who for blocked processes
*/

--------------------------------------------BATCH 1 STARTED--------------------------------------------
BEGIN TRANSACTION
IF OBJECT_ID('DIM_CUSTOMER_TMP1') IS NOT NULL DROP TABLE DIM_CUSTOMER_TMP1
CREATE TABLE DIM_CUSTOMER_TMP1 (TEST VARCHAR(200))

IF OBJECT_ID('TMP1') IS NOT NULL DROP TABLE TMP1
SELECT * INTO TMP1 FROM DIM_CUSTOMER_TMP1

WAITFOR DELAY '000:01:00'
IF OBJECT_ID('TMP1') IS NOT NULL DROP TABLE TMP1
IF OBJECT_ID('DIM_CUSTOMER_TMP1') IS NOT NULL DROP TABLE DIM_CUSTOMER_TMP1

COMMIT TRANSACTION
--------------------------------------------BATCH 1 FINISHED--------------------------------------------


--------------------------------------------BATCH 2 STARTED--------------------------------------------
SELECT NAME FROM SYSOBJECTS WHERE NAME LIKE '%SYSINDEXES%'
--------------------------------------------BATCH 2 FINISHED--------------------------------------------



--------------------------------------------BATCH 3 STARTED--------------------------------------------
SELECT NAME FROM SYSOBJECTS WITH (NOLOCK) WHERE NAME LIKE '%SYSINDEXES%'
--------------------------------------------BATCH 3 FINISHED--------------------------------------------