The problem that i was facing was with the case sensitiveness of SQL Server.
A default SQL Server installation is case insensitive, which means that SQL Server will not differentiate between upper and lower case characters/letters. That is, "Oracle" is the same as "ORACLE" or "oracle". But when it starts to differentiate, then its a very big problem.
The case problem now is callaed "COLLATION".
The steps to make things rite, do the following.
How to rebuild the master database (Rebuild Master utility)
To rebuild the master database
Shutdown Microsoft� SQL Server? 2000, and then run Rebuildm.exe. This is located in the Program Files\Microsoft SQL Server\80\Tools\Binn directory.
In the Rebuild Master dialog box, click Browse.
In the Browse for Folder dialog box, select the \Data folder on the SQL Server 2000 compact disc or in the shared network directory from which SQL Server 2000 was installed, and then click OK.
Click Settings. In the Collation Settings dialog box, verify or change settings used for the master database and all other databases.
Initially, the default collation settings are shown, but these may not match the collation selected during setup. You can select the same settings used during setup or select new collation settings. When done, click OK.
In the Rebuild Master dialog box, click Rebuild to start the process.
The Rebuild Master utility reinstalls the master database.