A long shot, but possibly someone here has had the same problem...
Server - NT4 SP6, SQL2000 SP3
I have some DTS packages that import Paradox for DOS files, and in order to
get the import to work it was necessary to change the CollationSequence
setting in the registry from Ascii to International.
These packages have been working fine for 6 months until we had to install
Windows Scripting (WSH) to do some programmatic drive mapping.
Now the error message "Incorrect Collating Sequence" has returned whenever
we try to connect to the paradox files.
Incidentally, installing WSH also "un-registered" some dlls used by our