I too have just discovered the same error when running the same SP that I run in 2000 on our new test 2005 database. This is a programatic sp which runs in seconds on 2000 so performance is not an issue...
Msg 16958, Level 16, State 3, Server ADELGO12V02, Procedure Time_20, Line 45
Could not complete cursor operation because the set options have changed since the cursor was declared.
Msg 16917, Level 16, State 2, Server ADELGO12V02, Procedure Time_20, Line 47
Cursor is not open.
Msg 16917, Level 16, State 1, Server ADELGO12V02, Procedure Time_20, Line 143
Cursor is not open.
SP Time_20...
declare calendar_cursor insensitive cursor for
select calendar, descr
from otherDatabase.otherUser.cclcald with (nolock)
open calendar_cursor
fetch next
from calendar_cursor
into @current_calendar,
@curr_cal_desc
I have just started investigating this so if I find out anything I will let you know.