SQL Server 7.0 can perform transactional replication to SQL Server 6.5 installations. You cannot take advantage of new replication features until all servers involved in the replication (such as Publisher, Distributor, and Subscriber) have been upgraded to SQL Server 7.0. If you have enabled replication, you do not have to disable it to perform an upgrade to SQL Server 7.0.
Replication can be upgraded only if you are upgrading from SQL Server 6.5 and then only with a one-computer upgrade. Otherwise, you must upgrade the databases, and then manually reestablish replication with SQL Server 7.0.
You upgrade the Distributor server first. Before you begin the upgrade from SQL Server 6.5, ensure:
To verify there are no undistributed transactions, run exec sp_repltrans against the Publisher database. If activity has stopped, no rows are returned. Then, run exec sp_MSDistribution_counter @publisher = ‘publisher_servername’ on the distribution database for each supported Publisher. The no rows returned message should have 0 in the undelivered_jobs column.