Restoring SQL7 backups to SQL2000 databases is fine, i've done it with quite large databases and have not encountered any problems so far. You just cant restore a SQL2000 backup into a SQL 7 db, thats all.
I would say "be careful". We had a database that was originally created in 6.5 and then upgraded to SQL 7 with no problems. When I restored it to a SQL 2000 server the size tripled. I was eventually able to shrink it back down, but was lucky to have the disk space to accommodate it.
Guys, i no that u cant restore a db that was backed up in sql 2000 to sql 7. But i need 2 move a datase from sql 2000 to sql 7. Do u guys have any idea on how to go about doing this. I've run out of ideas now so i really need your help.