Since this was an interesting and technical thread, I thought I'd post a follow-up message.

Basically, we have not touched the SQL Server machine hardware or OS at all. My client has been hard-nosed with the VAR, she didn't want to spend the better part of $10K on their recommended upgrades. Over the last 6 months or so, the VAR has applied a number of SAP Business One upgrades and patches. The reliability problems seem to be (roughly) more than 90% reduced, such that it is now mostly acceptable for line-of-business use.

The moral is, if you're persistent, and yell and scream long enough, and loudly enough, the vendor may make things happen. Although, they were probably getting yelled at by other customers, as well.

With a big company like SAP, it can feel like trying to turn a supertanker, by tying your rowboat to the bow and pulling as hard as you can ...