Because of the introduction of one-way encrypted passwords with SQL Server 6.0, changing the sort order has an impact on the use of passwords.
When a login ID is added or a password is changed, the password encryption algorithm takes the supplied password and generates a numeric representation of it, which is stored in the syslogins table. (If you look in master..syslogins.password, what looks like garbled text is actually a textual representation of the binary encrypted password).
When changing sort orders, if a user transfers syslogins out of the server with one sort order and into a new server with another sort order, the encrypted passwords will be moved as generated. This has the following effects:
When changing sort orders, take the appropriate steps to ensure that users will be able to log in to the server when the sort order conversion is complete. If the system administrator (SA) is not able to log in because of the effects described, you will need to restore the original sort order to correct the problem.
For information about changing character sets and sort orders and for information about login IDs and passwords, see the Microsoft SQL Server Administrator's Companion.