via MBS Blog Central (http://www.typepad.com/t/trackback/3974579) here is the current compatibility status for GP and SQL Server:
SQl 2005 and Dynamics GP Compatibility infoDynamics GP 9.0 - Compatible out-of-the box with SQL 2005
Great Plains 8.0 - Will be compatible with SQL 2005 with an upcoming service pack (no release date is set yet)
Great Plains 7.5 and all earlier release with NOT be compatible with SQL 2005
Also, with the release of Dynamics GP 9.0, SQL Server 7.0 is no longer supported. Just SQL 2000 and 2005.
Here is the full list of SQL versions supported with Dynamics GP 9.0.
Microsoft SQL Server 2000 Enterprise Edition SP 4
Microsoft SQL Server 2000 Standard Edition SP 4
Microsoft SQL Server 2000 Workgroup Edition SP 4
Microsoft SQL Server 2000 (64-bit) SP 4
MSDE 2000 SP 4
Microsoft SQL Server 2005 Enterprise Edition 32-bit and 64-bit
Microsoft SQL Server 2005 Standard Edition 32-bit and 64-bit
Microsoft SQL Server 2005 Workgroup Edition
Microsoft SQL Server 2005 Express Edition (formerly called MSDE)