Cannot create SQL database on Windows Server 2003

Hi all. Fairly new to SQL and Navision, in need of a bit of assistance.

I am trying to create a Db on a Windows 2003/SQL 2000 sp3 server. Having a few issues. We are using Navision 3.70.

1. Taking an extremely long time to create the DB (overnight) The Db is there in SQL manager, but this seems like a long time to create an empty db...

2. If I kill the create db process, I am able to restore data to the db, but I cannot open the db, error message the xp_ndo is not loaded, click ok to message, I get a message that my license only permits me to use the demonstration company.

xp_ndo.dll is added to the MSSQL/Binn folder, and loaded. I am not able to add the extended storage procedure, because the selection is grayed out in SQL Manager.

I am selecting to keep the license file in the db, but I am prompted that I can only use the demonstration license if I try to open a company in the db.


Is there a problem with using Windows Authentication in Windows Server 2003?

Help!
Thanks
C