>>The joy of it all! After experiencing the inability to create or modify a Stored Procedure, I called our Admin. She told me that with SP4, you loose the ability to create or modify Stored Procedures when using a linked server. This is for security reasons to prevent virus infection. Only the Admin can create or modify Stored Procedures.
>>
>>The error I receive is in this KB reference.
>>
>>http://support.microsoft.com/kb/296769/en-us
>>
>>I can assure you that I always comply with the suggested “fix”. Even Creating Stored Procedures outside of the Enterprise Manager (SQL Query Analyzer) results in the same problem.
>>
>>Now how do I do my job? This is a serious issue and I wonder if anyone has any insight into how it can be resolved - in my (the deverloper) favor!
>>
>>We have security - now what?
>>
>>We will be going to SQL Server 2005 in the future. That should be interesting. :)
>
>
>Perhaps I have the solution. This worked. Now to find out what other things will go wrong! :)
>
>SET ANSI_NULLS ON
>GO
>SET ANSI_WARNINGS ON
>GO
>
>
>CREATE PROCEDURE [dbo].[MySP]
>
>I always used SET ANSI_WARNINGS OFF, which should allow your code to run faster. With SP4, it creates the above problem.
>
>I still cannot modify any stored procedure I wrote before SP4 was installed. I can worry about that later.

I suppose you use SQL Server 2000 (because of the SP number :-))). I never saw such behavior when we need to create/modify SP on our server (SS 2000 SP4).