Jeff is spot on regarding supplying an answer. This is like googling for results. Sure, after much debate maybe it would be worthwhile Jeff showing some of us a solution and explaining why he likes it - sounds more like an article / tutorial than a post though. Lets not flick to the answers before really giving it a good go - you can miss so much opportunity to learn the 'whys' when you go straight to the answer.
His comment of (paraphrasing) "if you can't do it then I don't want you" is fair enough but different positions have different requirements. As a 3GL developer I often have to do T-SQL but rarely, if ever, am I expected to be at a level of what I would expect of a DBA. An expectation that is all to frequently not met.
Sometimes it is the thought process interviewers are after.
Sometimes it is how you manage outside of your comfort zone.
Sometimes it is to demonstrate their own skills (silly, I know).
My understanding of the test is that it has a quick "Are you the w-w-w-w-waterboy?" technical review aspect (recruitment agencies can be that bad). It also provides the basis of discussion of working practices. Also, does your code smell right?
-- Stop your grinnin' and drop your linen...they're everywhere!!!