One of the reason I never install or upgrade to Vista or Windows 7 was the rumors about compatibility issue with some older programs. But I am so much attracted by Windows 7 look-and-feel, hence I can’t resist not to try it. I also wondered whether SQL Server 2000 can run in Windows 7. To my surprise, it works. I can successfully install and run SQL Server 2000 Developer Edition in Windows 7 RTM 32-bit (x86). Read step by step guide here.

In Microsoft Support on SQL Server 2000, Microsoft never implicitly said SQL Server 2000 will not run in Windows Vista or more recent version of Windows. They just mentioned about not being able to update/patch MSDE and not compatible with security features like the annoying UAC (User Access Control).
The following paragraphs were quoted from Microsoft Support on SQL Server 2000.
General Questions
Q. Why is SQL Server 2000 (including MSDE) not going to be supported on Windows Vista or Windows Server “Longhorn?”
A. SQL Server 2005 presents several advances in technology from its predecessor, SQL Server 2000. One such important advancement is the support for patching SQL Server 2005 editions through Windows Update Services, which is not available for MSDE. Similarly, there are several advances in security and performance in the “Longhorn” and “Vista” platforms, such as ‘User Access Control’ that SQL Server 2005 can work with, but that MSDE cannot.
References:
- MSDE -> Microsoft SQL Server 2000 Desktop Engine
- Windows 7 RTM –> version number 6.1.7600 from Windows OS version Number
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