SQL

Well, Technet article Q317710 talks about this problem in SQL 2000. Perhaps the same fix will work for SQL 7.0:

WORKAROUND
To work around this problem, run this code to correct the available space information in the sysindexes table:
EXEC sp_spaceused @updateusage = 'TRUE'

Run that line in Query Analyzier. Log in and select your database in the drop-down window on top. Then put that line in and click the green arrow button.
After that, try and optimize the db.

hope this helps

To add to Josephs excellent answer, from the boys in redmond:
BUG #: 16286
SYMPTOMS
When you run DBCC DBREINDEX with a fillfactor of 0, you may experience error 1105 (Can't allocate space) or errors on the "default" segment, even though there isplenty of space available for this segment within the database.
CAUSE
Running DBCC DBREINDEX(,'',0) exposes this intermittent bug. Specifying a non-zero fillfactor avoids the problem. In some cases, once you have experienced this error, you may not be able to build any new indexes on any table, even in other databases on the same SQL Server.

The fillfactor used when originally creating the index makes no difference to this behavior. Also, using the "SORTED_DATA" option has no effect on the problem.

Shutting down and restarting the server may temporarily clear the symptoms of this bug. However, a shut down is unnecessary when using the workaround described below.
WORKAROUND
To work around this problem, specify a fillfactor other than 0; that is, explicitly code the appropriate fillfactor for the index in question.
STATUS
Microsoft has confirmed this to be a problem in Microsoft SQL Server version 6.5. This problem has been corrected in U.S. Service Pack 3 for Microsoft SQL Server version 6.5. For more information, contact your primary support provider.
First Published: Mar 5 1997 6:30AM
Keywords: kbusage

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