You're using the wrong datatype...

From BOL:

[ @stmt = ] stmt

Is a Unicode string that contains a Transact-SQL statement or batch. stmt must be either a Unicode constant or a variable that can be implicitly converted to ntext. More complex Unicode expressions, such as concatenating two strings with the + operator, are not allowed. Character constants are not allowed. If a constant is specified, it must be prefixed with an N. For example, the Unicode constant N'sp_who' is valid, but the character constant 'sp_who' is not. The size of the string is limited only by available database server memory.

-- end BOL --

Change this row:

DECLARE @SQL VARCHAR(1000)

to

DECLARE @SQL NVARCHAR(1000)

/Kenneth