As I’ve griped about before: two databases on one server is a bad idea. Virtualization and watered-down heavy iron hardware make for exceptions to this, but it’s a setup to use tons of RAM and throttle specific OS systems if you run multiple instances on one server.

All that being said - Microsoft has a new upgrade path for SQL Server 2005. MSDN says we can “install SQL Server 2005 side by side with SQL Server 2000 or SQL Server 7.0″ and then synchronize the data between the two instances. Users can then be switched to the new database or gradually transferred to it during testing and backup processes.

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