I've installed MSDE 2000 (8.00.760) on a brand new XP Pro machine with SP1. I've restored an SQL db successfully and can talk to it through osql. I get an error when trying to open or create a UDL file in the the folder C:\program files\common\system\ole db\data links\ (or in any folder for that matter).
The exact error is: Microsoft Data Links Properties you entered cannot be saved because the Data Link file is inaccessible. Ensure that the harddrive or network share is still available.
This prevents you from entering the wizard directly. If you right-click on the UDL file icon and select 'Properties' and then 'Provider' and try and select 'Microsoft OLE DB Provider for SQL Server' it won't let you and gives you an error message of 'The Service Provider is no longer available'.
SQL Server Service Manager is running fine in the bottom. I installed MDAC 2.8 before MSDE. I've tried uninstalling MSDE and reinstalling a few times now. I'm logged in as Administrator.
It's probably because you installed the mdac first which knocked some files out of sync since the MSDE is older. If you would have done the MSDE first THEN the mdac you probably would have been OK