Cannot create address book

Hello:
When trying to create a new address book in ME10(Enterprise), I cannot. We are using SQL server 2000 on a Win 2003 server and it fails. Error logs are inconclusive. I have attached the screen shot of the process engine.
Adm log is below

CURRENT DATE: 2008/06/30
14:39:43 ================ OPENING LOG ================
CURRENT FILE: MainFrm.cpp
14:39:43 INFO [Line 1834] Application closing

CURRENT FILE: Mxz.cpp
14:39:43 WARNING [Line 2868]
Performance data (time in seconds):
Function , CallCount, TotalTime, OwnTime, ChildrenTime


14:39:43 ================ CLOSING LOG ================



CURRENT DATE: 2008/06/30
14:39:49 ================ OPENING LOG ================
CURRENT FILE: MainFrm_OnCommand.cpp
14:39:49 INFO [Line 2253] Creating address book
14:39:49 INFO [Line 2289] Creating address book - Step 2
14:39:49 INFO [Line 2379] Creating address book - Step 3
14:39:49 INFO [Line 2495] Creating address book - Step 4
14:40:11 INFO [Line 2532] Creating address book - Step 5
14:40:11 INFO [Line 2539] Creating address book - Step 6
14:40:11 INFO [Line 2626] Creating address book - Done

CURRENT FILE: MainFrm.cpp
14:40:13 INFO [Line 1834] Application closing

CURRENT FILE: Mxz.cpp
14:40:13 WARNING [Line 2868]
Performance data (time in seconds):
Function , CallCount, TotalTime, OwnTime, ChildrenTime


14:40:13 ================ CLOSING LOG ================



CURRENT DATE: 2008/06/30
14:41:06 ================ OPENING LOG ================
CURRENT FILE: MainFrm_OnCommand.cpp
14:41:06 INFO [Line 2253] Creating address book
14:41:06 INFO [Line 2289] Creating address book - Step 2
14:41:06 INFO [Line 2379] Creating address book - Step 3
14:41:06 INFO [Line 2495] Creating address book - Step 4
14:41:49 INFO [Line 2532] Creating address book - Step 5
14:41:49 INFO [Line 2539] Creating address book - Step 6
14:41:49 INFO [Line 2626] Creating address book - Done

CURRENT FILE: MainFrm.cpp
14:41:50 INFO [Line 1834] Application closing

CURRENT FILE: Mxz.cpp
14:41:50 WARNING [Line 2868]
Performance data (time in seconds):
Function , CallCount, TotalTime, OwnTime, ChildrenTime


14:41:50 ================ CLOSING LOG ================



CURRENT DATE: 2008/06/30
14:44:34 ================ OPENING LOG ================
CURRENT FILE: MainFrm_OnCommand.cpp
14:44:34 INFO [Line 2253] Creating address book
14:44:34 INFO [Line 2289] Creating address book - Step 2
14:44:34 INFO [Line 2379] Creating address book - Step 3
14:44:34 INFO [Line 2495] Creating address book - Step 4
14:45:01 INFO [Line 2532] Creating address book - Step 5
14:45:01 INFO [Line 2539] Creating address book - Step 6
14:45:01 INFO [Line 2626] Creating address book - Done
14:45:57 INFO [Line 2253] Creating address book
14:45:57 INFO [Line 2289] Creating address book - Step 2
14:45:57 INFO [Line 2379] Creating address book - Step 3
14:45:57 INFO [Line 2495] Creating address book - Step 4
14:46:16 INFO [Line 2532] Creating address book - Step 5
14:46:16 INFO [Line 2539] Creating address book - Step 6
14:46:16 INFO [Line 2626] Creating address book - Done

CURRENT FILE: MainFrm.cpp
14:46:17 INFO [Line 1834] Application closing

CURRENT FILE: Mxz.cpp
14:46:17 WARNING [Line 2868]
Performance data (time in seconds):
Function , CallCount, TotalTime, OwnTime, ChildrenTime


14:46:17 ================ CLOSING LOG ================



CURRENT DATE: 2008/06/30
14:50:43 ================ OPENING LOG ================
CURRENT FILE: MainFrm.cpp
14:50:43 INFO [Line 1834] Application closing

CURRENT FILE: Mxz.cpp
14:50:43 WARNING [Line 2868]
Performance data (time in seconds):
Function , CallCount, TotalTime, OwnTime, ChildrenTime


14:50:43 ================ CLOSING LOG ================



CURRENT DATE: 2008/06/30
14:51:01 ================ OPENING LOG ================
CURRENT FILE: MainFrm.cpp
14:51:01 INFO [Line 1834] Application closing

CURRENT FILE: Mxz.cpp
14:51:01 WARNING [Line 2868]
Performance data (time in seconds):
Function , CallCount, TotalTime, OwnTime, ChildrenTime


14:51:01 ================ CLOSING LOG ================



CURRENT DATE: 2008/06/30
14:51:07 ================ OPENING LOG ================
CURRENT FILE: MainFrm_OnCommand.cpp
14:51:07 INFO [Line 2253] Creating address book
14:51:07 INFO [Line 2289] Creating address book - Step 2
14:51:07 INFO [Line 2379] Creating address book - Step 3
14:51:07 INFO [Line 2495] Creating address book - Step 4
14:51:29 INFO [Line 2532] Creating address book - Step 5
14:51:29 INFO [Line 2539] Creating address book - Step 6
14:51:29 INFO [Line 2626] Creating address book - Done

CURRENT FILE: MainFrm.cpp
14:51:43 INFO [Line 1834] Application closing

CURRENT FILE: Mxz.cpp
14:51:43 WARNING [Line 2868]
Performance data (time in seconds):
Function , CallCount, TotalTime, OwnTime, ChildrenTime


14:51:43 ================ CLOSING LOG ================



CURRENT DATE: 2008/06/30
14:56:32 ================ OPENING LOG ================
CURRENT FILE: MainFrm_OnCommand.cpp
14:56:32 INFO [Line 2253] Creating address book
14:56:32 INFO [Line 2289] Creating address book - Step 2
14:56:32 INFO [Line 2379] Creating address book - Step 3
14:56:32 INFO [Line 2495] Creating address book - Step 4
14:57:07 INFO [Line 2532] Creating address book - Step 5
14:57:07 INFO [Line 2539] Creating address book - Step 6
14:57:07 INFO [Line 2626] Creating address book - Done

CURRENT FILE: MainFrm.cpp
14:57:08 INFO [Line 1834] Application closing

CURRENT FILE: Mxz.cpp
14:57:08 WARNING [Line 2868]
Performance data (time in seconds):
Function , CallCount, TotalTime, OwnTime, ChildrenTime


14:57:08 ================ CLOSING LOG ================



CURRENT DATE: 2008/06/30
14:59:17 ================ OPENING LOG ================
CURRENT FILE: MainFrm_OnCommand.cpp
14:59:17 INFO [Line 2253] Creating address book
14:59:17 INFO [Line 2289] Creating address book - Step 2
14:59:17 INFO [Line 2379] Creating address book - Step 3
14:59:17 INFO [Line 2495] Creating address book - Step 4
14:59:46 INFO [Line 2532] Creating address book - Step 5
14:59:46 INFO [Line 2539] Creating address book - Step 6
14:59:46 INFO [Line 2626] Creating address book - Done

CURRENT FILE: SQLMisc.cpp
14:59:57 ERROR [Line 518] LOG ERROR!

CURRENT FILE: MainFrm_OnCommand.cpp
15:00:08 INFO [Line 2253] Creating address book
15:00:08 INFO [Line 2289] Creating address book - Step 2
15:00:08 INFO [Line 2379] Creating address book - Step 3
15:00:08 INFO [Line 2495] Creating address book - Step 4
15:00:50 INFO [Line 2532] Creating address book - Step 5
15:00:50 INFO [Line 2539] Creating address book - Step 6
15:00:50 INFO [Line 2626] Creating address book - Done

CURRENT FILE: MainFrm.cpp
15:00:51 INFO [Line 1834] Application closing

CURRENT FILE: Mxz.cpp
15:00:51 WARNING [Line 2868]
Performance data (time in seconds):
Function , CallCount, TotalTime, OwnTime, ChildrenTime


15:00:51 ================ CLOSING LOG ================

TIA
Saavik _