The easiest way is to detach the database from the SQL 7 database server, move the database files to the new SQL 2005 server, and attach them.
This will not bring over the logins, jobs or DTS packages. They will need to be manually moved over.
The DTS packages will need to be moved over by manually opening each package and saving it to the SQL 2005 server. After you install the SQL 2005 client tools on your workstation you’ll need to go and download the legacy SQL DTS editor so that you can edit the old packages and save them to the SQL 2005 server.
The jobs can be scripted out and the script rerun on the SQL 2005 server.
The logins can either be created by hand, or you can use DTS or the new SSIS to copy them over using the copy login object.