When installing SQL Server 7.0 (including MSDE 1.0), SQL Server 2000, or a service pack for SQL Server 7.0 or SQL Server 2000, the information provided for the install process is collected and stored in a setup file called setup.iss. The setup.iss file can then be used to automate the installation of additional SQL Server systems. SQL Server 2000 also includes the ability to record an unattended install to the setup.iss file without having to actually perform an installation. The administrator setting up the SQL Server can supply a password to the installation routine under the following circumstances:
- If the SQL Server is being set up in "Mixed Mode", a password for the SQL Server administrator (the "sa" account) must be supplied.
- Whether in Mixed Mode or Windows Authentication Mode, a User ID and password can optionally be supplied for the purpose of starting up SQL Server service accounts.

In either case, the password would be stored in the setup.iss file. Prior to SQL Server 7.0 Service Pack 4, the passwords were stored in clear text. For SQL Server 7.0 Service Pack 4 and SQL Server 2000 Service Packs 1 and 2, the passwords are encrypted and then stored. Additionally, a log file is created during the installation process that shows the results of the installation. The log file would also include any passwords that had been stored in the setup.iss file.
A security vulnerability results because of two factors:
- The files remain on the server after the installation is complete. Except for the setup.iss file created by SQL Server 2000, the files are in directories that can be accessed by anyone who can interactively log on to the system.
- The password information stored in the files is either in clear text (for SQL Server 7.0 prior to Service Pack 4) or encrypted using fairly weak protection. An attacker who recovered the files could subject them to a password cracking attack to learn the passwords, potentially compromising the sa password and/or a domain account password.

Download locations for this patch The KillPwd utility can be obtained at the following location:
Microsoft SQL 7, MSDE 1.0, and Microsoft SQL Server 2000:
http://www.microsoft.com/Downloads/Release.asp?ReleaseID=40205