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Five months ago we migrated our SQL server databases from 7 to 2000. Since then we have experienced timeouts very often. Sometimes we've have detected that MS Access blocks the Server, and when we kill the process everything starts to work properly. Our server has 3 GB of RAM. We have about 500 connections to SQL server. Do you think that is enough memory? Why are we still having timeouts?
If you have MS Access blocking the server, that is likely to be part of the problem. More memory is always a good thing but I've certainly seen a number of systems with 3G RAM that are dealing happily with 500 users. I'd suggest looking at what is being blocked (sp_lock is a good start here). I'd also suggest checking the transaction isolation levels in use in the application.