Yes sql2000 supports multiple collations 'each of which can be set to a different collation' at the sql instance level, the database level, the table level and columns within a table.

By default if you specify no collation on a create db, the database takes on the instances default collation (its actualy based on whatever the model db' collation is), objects within a db (again if you do not specify) take on the databases default collation. You can specify a different collation for any of these objects.

Note if you perform a db restore the collation of the database will be retained. i.e backup a db and its collation was 'latin1_general_CI_AS', then restore to sql instance which has a default of 'sql_LATIN1_CP1_CI_AS' and the database retains its collation of 'latin1_general_CI_AS'.  Something to be aware of when restoring vendor supplied databses etc onto your systems.