My head spins...

If I understand it correctly, you have a table with bit values and you want to make some sort of comparison, and you think that a varbinary(MAX) is not what you need. But I'd say that most likely it isn't.

Why don't you present your original problem instead, and might be able to find a solution. A tip: you help yourself enormously if you post:

1) CREATE TABLE statements for your table(s).

2) INSERT statements with sample data.

3) The desired result given the sample.

4) A short description of the business rules.

This way can copy the script you post to develop a tested solution.