Можно еще использовать SQLXML 2.0 (XML for SQL Server 2000)

Microsoft® SQL Server 2000 introduced several new features for querying database tables and receiving the results as an XML document. Web release 1 of SQLXML (XML for SQL Server) added Updategrams and XML Bulk Load functionality, as well as a host of other features to the SQL Server 2000 base. Continuing the Web Release strategy, SQLXML 2.0 adds support for XSD mapping schemas, Client-Side XML functionality, a new SQLXML OLEDB provider, a tool to convert XDR mapping schemas to XSD, and significant performance improvements. SQL Server 2000 users can use client-side XML functionality to move XML processing to the middle tier for better scalability or to wrap SQL Server Stored Procedures with the Transact-SQL FOR XML clause. SQLXML 2.0 also introduces a set of SQLXML Managed Classes that allows .NET developers to access SQLXML functionality.

Client-side XML functionality - по описанию должна работать с MS SQL 7.0