DId you happen to install the "SQL Critical Update" utility (more info at http://support.microsoft.com/?kbid=814372). This is the tool I recall folks saying was causing issues just like you are reporting.

More specifically it was running Servpriv.exe , if I recall correctly, seemed to be at the root of the issue.

Edited by - antares686 on 05/07/2003 04:43:27 AM