I am not familiar with SQL however here is my two cents.
EFS or other encryption can limit access to any file to just those that have
the EFS private key either as a user or recovery agent [which is required in
W2K]. W2K does not accomadate sharing of EFS files very well like XP Pro or
W2003 though I believe there is a hack or in a domain multiple recovery
agents can be used that all can have access as long as the private key is on
the computer. EFS has it's own risks and the link below is mandatory reading
for anyone interested in it.
http://support.microsoft.com/default.aspx?scid=kb;EN-US;223316
Otherwise in W2K it is impossible to secure a file from anyone who has read
access to an unencrypted/non password protected file. Therefore you need to
strictly control share and ntfs permissions. The other suggestion is to
harden the computer/domain to include complex passwords, an account lockout
policy, and of course physical security of domain controllers and servers. I
would also enable auditing of account logons and account management in
Domain Controller Security policy and logon events for servers making sure
to increase the size of the security log quite a bit. Ipsec policy can be
used to encrypt data that goes over the network and restrict access to
servers from certain computers on the domain. You can not however use ipsec
ESP/AH for communications between domain controllers and domain members, so
any policy would need to exempt them based on their static IP addresses.
Users leaving their computers logged on an unattended is another problem
that may allow unathorized access. You can use Group Policy to enable the
screen saver to lock a computer after a period of inactivity.
If users do not need cd burners, do not allow them and consider using
workstations with cases that lock access to drives, have usb/firewire
disabled in cmos, boot only from the hard drive, and password protect cmos
settings. Of course you still would have vulnerability to unathorized
computers on the network which would require switches that can use mac
filtering and/or 802.1x authentication to control that. Email is a problem
that can be controlled if you mail servers can deny sending attachments but
then you have a problem with http based email such as Hot Mail and the only
way I know of to control that is to use firewall rules that allow users to
access only specific internet sites based on IP address and deny all other
unauthorized internet access including chat.
Like I said, I don't know much about SQL, so you may also want to post in
one of the SQL newsgroups where you may get advice on how to implement SQL
specific features to improve security. --- Steve