To work around this problem, you can use either of these methods:
Use the server name to connect to SQL Server. You can use the SQL Server Client Network Utility to set up an alias for the server that is running SQL Server or implement name resolution by using WINS, DNS, or LMHOST file so that you can connect by server name.
-or-Set the Force Protocol Encryption option to ON on the server by using the SQL Server Server Network Utility. If you turn on encryption on the server, all the clients must connect by using encryption and you must install a certificate on the server. For more information, refer to the "Net-Library Encryption" topic in SQL Server 2000 Books Online.
For additional information, click the following article number to view the article in the Microsoft Knowledge Base:
318605 INF: How SQL Server Uses a Certificate When the Force Protocol Encryption Option is Set On
Microsoft has confirmed that this is a problem in the Microsoft products that are listed at the beginning of this article.
Microsoft is researching this problem and will post more information in this article when the information becomes available.
You turn on the Force Protocol Encryption option by using the SQL Server Client Network utility.
For additional information about how to configure SQL Server to use certificates, click the article number below to view the article in the Microsoft Knowledge Base:
276553 HOW TO: Enable SSL Encryption for SQL Server 2000 with Certificate Server
If a client fails to connect to SQL Server and this error message occurs
Encryption not supported on SQL Server
you need to make sure that SQL Server is restarted after the certificate is installed on the server that is running SQL Server.