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Following a SQL Server 6.5 to SQL Server 7.0 upgrade, you may be unable to log in to SQL Server 7.0 using some SQL Server authenticated logins that were upgraded from SQL Server 6.5 if all of the following conditions are met:
Login failed for user '%ls'.
Passwords in a case-insensitive SQL Server are converted to uppercase before being stored or used. Passwords in a case-sensitive SQL Server are not converted to uppercase. Because of this difference, passwords originally encrypted on a case-sensitive server and later transferred to a case-insensitive server cannot be used unless all alphabetic characters in the password are uppercase.
For more information about this behavior see the "Effect on Passwords of Changing Sort Orders" topic in either the SQL Server 6.5 or 7.0 Books Online.
In this situation, you can do either of the following to work around this problem:
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