I've recently become a fan of using VMware for this.
My workstation is WinXP and I will run a couple of instances of Win2000Server 
in that.
It keeps your PC nice and clean and you don't have SQL server, mySQL, CF and 
whatever else to have to install and configure on your PC. Not to mention the 
problem that you are running into with multiple versions of CF.

This really makes it easy when you change to a new PC. Just copy your VMware 
files over and your dev environment is instantly working.

Terry

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