SQL Server does not properly handle the transaction scope.
Microsoft has confirmed this to be a problem in SQL Server 7.0. This problem has been corrected in U.S. Service Pack 3 for Microsoft SQL Server 7.0. For more information, click the following article number to view the article in the Microsoft Knowledge Base:
274799 INF: How to Obtain Service Pack 3 for Microsoft SQL Server 7.0 and Microsoft Data Engine (MSDE) 1.0
For more information, contact your primary support provider.