Looking at that procedure in 2000 there is the following:
-- NOTE: THE IMPLEMENTATION (ie. using trace bit 1717) IS *VERY* LIKELY TO CHANGE,
--SO DONT EVEN *THINK* ABOUT USING THIS TRACE BIT DIRECTLY!!!
if @pSeqMode = 1
--- Undocu trace 1717. Now MSShipped bit will be set auto at Create time.
So I would be tempted to say when using SSMS make sure you select the correct database, that is the DB you want to create the SP within My guess would be that setting this trace bit also effects other system internals and would be something you would not want to alter.