From what I've gathered from Microsoft, here is the story on compatibility with Microsoft SQL Server 2005 and various versions of Great Plains (now called Microsoft Dynamics GP).
Dynamics GP 9.0 - Compatible out-of-the box with SQL 2005
Great Plains 8.0 - Will be compatible with SQL 2005 with an upcoming service pack (no release date is set yet)
Great Plains 7.5 and all earlier release with NOT be compatible with SQL 2005
Also, with the release of Dynamics GP 9.0, SQL Server 7.0 is no longer supported. Just SQL 2000 and 2005.
Here is the full list of SQL versions supported with Dynamics GP 9.0.
Microsoft SQL Server 2000 Enterprise Edition SP 4
Microsoft SQL Server 2000 Standard Edition SP 4
Microsoft SQL Server 2000 Workgroup Edition SP 4
Microsoft SQL Server 2000 (64-bit) SP 4
MSDE 2000 SP 4
Microsoft SQL Server 2005 Enterprise Edition 32-bit and 64-bit
Microsoft SQL Server 2005 Standard Edition 32-bit and 64-bit
Microsoft SQL Server 2005 Workgroup Edition
Microsoft SQL Server 2005 Express Edition (formerly called MSDE)
I'm still trying to get some answers about Dynamics GP 9.0 being "mirror aware". If it is, this would mean that its compatible with the new "database mirroring" feature in SQL 2005. This would allow you to have a standby server running SQL 2005 and then should your primary server fail, the Dynamics GP client apps would know to switch over to the mirror server without any user intervention. This would be quite handy. And not too expensive either - your mirrored server doesn't need an additional SQL 2005 license.
I'll post here when I get to the bottom of this question.
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