No, it’s not true. (Well the database might need a couple of Megs extra, but that’s it.)
SQL Server 2000 and SQL Server 2005 use the same format when storing the data, so the data doesn’t need to be changed. When upgrading the database from SQL Server 2000 to SQL Server 2005 only the meta data about the tables is changes. The actual table data is left untouched.
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