Kamil,
Did you try sample code
E. Use an OUTPUT cursor parameter from
CREATE PROCEDURE in BOL?
>No, Sergey, CURSOR_CLOSE_ON_COMMIT was OFF, i checked it with sp_dboption and the set it explicitely to OFF, result was the same (error).
>I've got MS SQL 2000 by the way.
>Maybe you have a couple of stored procedures which successfully exchange data via cursor.
>Best wishes.
>Kamil
>P.S. i'm on vacation, so my reply can be late.
>
--sb--