You didn't specify which version of SQL Server that you're using. It can make a big difference.

In general, in order to restore a backup on a different server, both server must be using the same character set and sort order. This goes for both 6.5 and 7.0.

There are additional complications when using 6.5. On 6.5 the database must already exist before the restore can occur (7.0 will create the database automatically). The easiest way is to use the sp_help_revdatabase system stored procedure to create a script that will correctly re-create the database. You'll have to manually create the devices, just make sure you use the same names that are being used by the original server, or change the script to reflect the new names.

-Mike