well, I got it working....
there was a cut & paste error in the connection string under the AppSettings section....i.e., value="Server=Server=ENVOY\SQL2000.....
removed one of the "Server=" , also completely removed the SQL2005 connection string info....
it was probably the error in the AppSettings connection string, though, on the surface, it LOOKS like it should be using the one from the connectionString section, you never know unless you examine every line of code.....so, as the comments in the config file say, "some legacy modules use this connection string"
thanks to all who posted, thanks to the DNN team, I've been using DNN since v1 and it's a great piece of work....
Jerry