We've performed upgrades in the past from 7 to 2000 by restoring the databases and never had issues with this. During the restore, SQL Server will recognize that it's a 7 version database and upgrade the structures to 2000 automatically.
What specific problems are you having with your restore? I suspect that you may be attempting to restore the database on a server that does not have the same disk or file structure of the original. You can use the 'RESTORE FILELIST ONLY' command to view the original paths to the files. Or you can create an empty database with the same name on your new server, then perform a restore from Enterprise manager with the 'Force Restore Over Existing Database' option checked. Hope this helps.
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