The upgrade process can take place on a single computer or from one computer to another, depending on where Microsoft® SQL Server™ version 6.x and SQL Server 7.0 are installed. The SQL Server Upgrade Wizard identifies the two servers as follows:
The name of your SQL Server 6.x server. This defaults to the name of the computer on which the SQL Server Upgrade Wizard is being run, but may be changed if your 6.x server is on another computer.
The name of your SQL Server 7.0 server. This is always the name of the computer on which the SQL Server Upgrade Wizard is being run.
For a one-computer upgrade, leave the import and export servers at their default values.
For a two-computer upgrade, select the name of the computer with your 6.x server as the export server. To upgrade SQL Server from one computer to another, the two computers must be in the same network domain.
Important The one-computer upgrade is the only method supported when upgrading a server used in replication. A two-computer upgrade is not supported for replication servers.