Check following link:
http://msdn2.microsoft.com/en-us/library/ms174269.aspx
--USE THIS TO CHANGE DATABASE COLLATION
http://msdn2.microsoft.com/en-us/library/aa197950(SQL.80).aspx
--USE THIS TO CHANGE INSTANCE COLLATION
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"Thare are only 10 types of people in the world:
Those who understand binary, and those who don't."