SQL Server 7.0 create table message

The following statement gives a message row too large. Can I get some information on what this means and what effect will have on the overall database.

CREATE TABLE [dbo].[TrendAnnotations] (
[TADIndex] [int] NOT NULL ,
[CreatedBy] [nvarchar] (64) NULL ,
[Annotation] [nvarchar] (4000) NULL
) ON [PRIMARY]
GO