Answer for:

server 2003 with sql 2000 error 0x800423f4

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Tony Hopkinson

you lose the ability to restore from transaction log backups.
ie you can only go back to the last full or differential sqlserver back up.

So whether you can afford to do depends on your current sql server back up schedule, if you aren't doing transaction log backups in between full or differentials to reduce your exposure to data loss, then simple will do the job, it uses less resources as well.

I always like dedicated machines for my sql servers, 2000 is not too bad but if you upgrade to 2005 or after, it's a serious memory hog by default.
I'd also be looking at a hardware solution, mirroring or raid for my database as well unless it was lightly used.