Paschal is getting the dreaded general network error.  The GNE is an error raised by data access libraries (ie, MDAC) in response to various and sundry error conditions.  The definitive answer to "general network error" can be found at

http://groups.google.com/groups?hl=en&lr=&ie=UTF-8&oe=UTF-8&selm=c7wfMdGgCHA.2476%40cpmsftngxa08&rnum=9

Having tracked down this error myself, here are some things to look for:

If it occurs in one application exclusively, that would rule out a "general" network error regardless of what the error message returned says.  It has to be something going on inside the proc(s).  Is it a particular proc?  Or, if it occurs with any procs from the application, what is common to all the procs, if anything?

But if it only happens in one app, then the procs may occasionally be using too much bandwidth, either overloading the network or hosing a router/firewall/etc. Unfortunately, resolving this error can take a considerable amount of time.

If you also have problems when you point it to a server running SQL Server SP2, my suggestion is update to SP3a, and then upgrade the MDAC libraries to 2.8 (just released Aug 4 2003, so it's newer than the ones included with .NET v1.1), depending on how much effort this would take.  If this doesn't work, then I'd suggest getting a list of all the stored procs that failed and doing a code review on them to see if anything could be causing the issue.