Microsoft SQL Server 2005 Service Pack 2 (SP2) enables all editions of SQL Server 2005 to take advantage of the enhancements within Windows Vista and the 2007 Office System including SQL Server Analysis Services and Reporting Services improvements for Office 2007; increased interoperability; and enhanced manageability and data compression.

Download it from here: http://www.microsoft.com/downloads/details.aspx?FamilyId=d07219b2-1e23-49c8-8f0c-63fa18f26d3a&DisplayLang=en

Microsoft CRM 3.0 fully supports SQL Server 2005 SP2!

Best Wishes, Reuben (UK MSCRM Partner Technology Specialist)