You can use MSDE 2000 to host your Project Server database. However, MSDE has significant performance limitations and is not recommended for anything beyond the most basic test deployment.

The limitations to using MSDE instead of SQL Server as the repository for the Project Server database include:

• Maximum number of connections   MSDE has a managed concurrency workload governor that limits up to five concurrent batch workloads for optimal performance. As batch workloads are added that increase the number past five, the concurrency governor slows down the system. However, MSDE 2000 has no limitations on the number of users who can be connected to the database.
• Maximum database size   MSDE supports up to a 2 gigabyte (GB) database. A single computer can host multiple instances of MSDE, with each instance supporting up to a 2 GB database.
• Maximum memory usage   MSDE is limited to 1 GB of memory, regardless of how much memory is available on the computer.
• Administration tools   MSDE does not come with the administration tools that are provided with SQL Server, including SQL Server Enterprise Manager, SQL Server Query Analyzer, and SQL Server Profiler. All administration must be performed by using the Osql command-line tool or by using the administration tools that are installed with a separate instance of SQL Server.

To install MSDE SP3

1. Go to the Microsoft Web site.
2. Select the language that matches your version of Microsoft Project Server 2002 from the Full Download box on the right side of your screen, and then click Go.
3. Locate the download link to the SQL2KDeskSP3.exe file, and then click the download link to start the download.

    Note   Non-English versions of the download will be listed as language_SQL2KDeskSP3.exe where language represents the language version of the download.

4. When prompted, save the file to your Windows desktop.
5. In Windows Explorer, double-click the file that you previously saved to your desktop.
6. Click I Agree to accept the End-User License Agreement (EULA).
7. In the Installation Folder box, type C:\sql2ksp3 and then click Continue.
8. Click Start , click Run, and then type the following command in the Open box:

   C:\sql2ksp3\msde\setup.exe sapwd=<strong_pwd> securitymode=sql disablenetworkprotocols=0
   

   where strong_pwd is your System Administrator (sa) password.

9. Click OK .