Your 2000 instance probably had the CURSOR_DEFAULT database option set to LOCAL (the default is GLOBAL).
See http://msdn.microsoft.com/en-us/library/ms190249(v=sql.105).aspx
Example change script:
ALTER DATABASE <database_name>
SET CURSOR_DEFAULT LOCAL;
Paul White
SQLPerformance.com
SQLkiwi blog
@SQL_Kiwi