I understand that there are compatibility issues between XP SP3 and SQL
Server 2005 Express that MS installs as part of its Office Small Business
2007 suite. Can anyone verify if this is the case? If so, are there any
workarounds or fixes (other than not upgrading to SP3?)

>I understand that there are compatibility issues between XP SP3 and SQL
>Server 2005 Express that MS installs as part of its Office Small Business
>2007 suite. Can anyone verify if this is the case? If so, are there any
>workarounds or fixes (other than not upgrading to SP3?)

I have not heard of any such thing. Have you install the Microsoft
Update ActiveX control to see if it pulls any updates to the SQL 2005
components when you run Windows Update? Do that first.

- Thee Chicago Wolf (MVP)