Is this the application that is connecting to the sql 2000 database that is hanging, or is this that sql 2000 is hanging when the application connects to it?
We are going to need more information, as well as error messages (which might me in logs) in order to be able to help you.
You also might want to google the error messages you are receiving.
BTW, you posted this in the SQL 2005 forum; it seems like it should have been in the SQL 2000 forum.
Wayne
Microsoft Certified Master: SQL Server 2008
Author - SQL Server T-SQL Recipes