SQL Server 2000 and VFP 8

This VFP 8 Application with SQL Server backend has been running OK for years but has just surfaced an issues when several thousand records across three tables are set for update and then committed.

After churning for about 10 minutes it returns an error message.

The message returned by VFP is Too many files open. None of tables are updated.

If fails on several different workstations all running WIN XP.

I ran the same application in my office on a standalone XP machine with SQL Server 2000 installed with similar volume and it runs OK.

I'm wondering if there any settings for SQL server that might be a factor here.

Any other ideas?