Sorry for the late reply.
I have uploaded a sample project, you find it here
It works, if I set the cursortype of msquery1 to ctKeyset... The crDefaultResultSet leeds to an error.
I use Delphi 2006, with SDAC version 3.70.2.28. The SQL Server is either a SQL 2000 server, or a SQL 2005 Server Express. No changes. I use SQLOLEDB.1
Hope this information is enough... If not, just ask... It's probably just a small trick to get the example work.