Hi GSquared,

Thanks for the input. Although one can save the File as either .SQl or .Txt the character encoding remains the same(Unicode).

If you Right-Click any object in VSS and select Properties, the General tab will display the File Type. In our system, all the objects are stored as ANSI/MBCS. The output from the script is Unicode. This is what causes an error when doing a DIFF.

In SQL 2000 the scripting prompt allowed you to choose the character encoding and we always chose ANSI