Create a linked server connection and use a

SELECT ... INTO {linkedserver}.[{database}]..[{table}] FROM [{database}]..[{table}] WHERE statusflag = 0

Update the statusflag on the source table after the insert (perhaps include an inner join with the destination table if during the transfer other records in the source will get a value 0 for statusflag).

UPDATE [{database}]..[{table}]

SET statusflag = 1 WHERE statusflag = 0

FROM [{database}]..[{table}] source

INNER JOIN {linkedserver}.[{database}]..[{table}] target

ON source.ID = target.ID

WHERE target.ID = 0

Off course the above solution needs to be adjusted to your needs....