ESRI has released a patch for ArcSDE 8.3 for SQL Server. This Patch contains a workaround for a problem identified with Microsoft SQL Server 2000 SP3. With the release of this Patch the use of SP3 for Microsoft SQL Server 2000 with ArcSDE 8.3 is now supported.
We highly recommend that customers download and install this patch at their earliest convenience. This Patch contains all the fixes from ArcSDE 8.3 Patch 1 as well as the other fixes. This patch can be downloaded along with complete information from the ESRI Online Support Center link provided below.
ESRI also recommends that all users of SQL Server 2000 upgrade to SP3. Users who have not done so, should do so at this time.