In cased you missed this, in February Microsoft released v1.1 of the MS JDBC Driver for SQL 2005.
The SQL Server 2005 JDBC Driver is JDBC 3.0 compliant and runs on the Java Runtime Environment (JRE) 1.4 and later versions. It has been tested against all major application servers, including BEA WebLogic, IBM WebSphere, JBoss, and Sun. There is a redistribution license so that ISVs that build Java apps that connect to SQL 2005 can redistribute the driver freely.
See here for more details, or to download it.