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When an ArcGIS 10 client using a direct connection creates data in an ArcSDE 9.3.x geodatabase running on Microsoft SQL Server 2008, date fields are created using the datetime2 data type instead of datetime.
ArcGIS clients prior to version 10 are unable to see or update datetime2 fields.
The datetime2 data type is new in SQL Server 2008. It is only supported with ArcGIS 10.
ArcGIS 10 clients using a direct connection to older geodatabases in SQL Server 2008 are erroneously creating date fields using the datetime2 data type.
This only occurs when ArcGIS 10 clients use Direct Connect to create data in 9.3.x geodatabases. Connections made using the Application Server create date fields correctly using datetime.
This problem is resolved in ArcGIS 10 SP1.