Yes, a Microsoft SQL Server 2000 database can be hosted on a Microsoft SQL Server 2005 server, and it can also be upgraded to a 2005 database structure under the database properties.
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Yes it can. You can just attach the mdb file with no problem. 2005 & 2008 are fully compatible with 2000 database files.
The action of changing the Compatibility level to the latest value is really optional. I recommend NOT "upgrading the compatibility level". Performance wise, there is no advantage in speed. The Compatibility level is there to ensure features used in the 2000 database are made available to it (ie, some functions are renamed in later version, some are deprecated, etc). So, unless you've done a thorough check (or a very sure), I recommend leaving it at 2000 compatibility.
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Yes absolutely, you can do it. Here is top 4 methods that will help you for this.
1. Backup & Restore
2. Detach & Attach
3. Generate Create Script
4. Copy Database Wizard using SSMS
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