I have just came across this compatibility issue in my new company. The original DB was created SQL 7. or compatibility 70

My question is if there isn't any issues with there code, would it be an issue to raise the compatibility level to the current version we are running 2008 r2?

I went back to my new boss and he said this note below. I wanted to know if this is true or not as this is the first time I have came across this type of issue

"when transitioning to SQL 2005 that if the database was created in earlier versions it would never truly reach the latter compatibility level unless the database was natively created with that version"

Basically raising the compatibility level will I be able to use most of the new functionality in the newer versions that we have upgraded to? Thanks