Upgrade SQL Server 2000to SQL Server 2005 in an SAP environment

Hi,
I have a scenario in which we are going to upgrade SQL server 2000 to SQL server 2005 in SAP an environment.
Now SQL server has a concept of In-Place Upgrade and Side-by-Side Migration Process.I want to know what does both of these mean.
We have an SAP note(799058.It talks about the upgrade in Step II.Is it the same as In-Place Upgrade concept in SQL?
What is step III in the note talking about? Is it talking about Side-by-Side Migration?
It would be of gr8 help if someone could provide the conceptual knowledge on these and what does the note mentioned above talks.

Hello
Please review my post on SQL upgrade.
SAP on SQL Server
You may also like to review
http://www.microsoft.ie/downloads/itprosql-90.ppt#568,17,Demo
Can you please advise your DB size and the max. amount of downtime your business can afford?
I will check, but I am almost sure that a side-by-side SQL upgrade is not appropriate for SAP systems.
Thanks
N.P.C

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