I was asked an interesting question about collations in sql server recently about where variables in a script got their collation's from. I really wasn't too sure of the answer, I generally try to ensure that databases are in the company default collation although I realise that this is not always possible.
Given how important this is I thought I would investigate it a little:
The first question I had was what collaction is the actual T-Sql script compiled in, is it the database or server?