WebAS640 SP7 Installation

I installed SQL Server 2000 SP3. Now I am trying to install WebAS 640 SP7 then I get the following erro:

"Wrong Server Collation; J2EE installation requires SQL Latin 1 General CP850 Bin 2 Collation.

MS SQL Server Patch is too low; Please read the note 62988;

These problems must be fixed before continuing installation."

I am using the latest J2sdk. Can anybody help?