I might be wrong but I once read somewhere that although it would work, Oracle has refused to certify it on Windows 2000. This might have changed since then. My suggestion is Oracle is the best to ask, also it might be risky to run production systems on something if it is not certified by Oracle, or you might become a guinea pig to find out all their bugs.
It looks like things have changed, I was not up to date, here is what Oracle says:
"Windows 2000 Support
Oracle8i release 2 (8.1.6) on Windows NT is certified on Windows 2000 with the following exceptions:
Oracle Enterprise Manager release 2.1 is not supported on Windows 2000. After certification is complete, a patch, if necessary, will be released that includes Windows 2000 support.
Legato Storage Manager (LSM) release 5.5, included with this product CD-ROM, is not supported on Windows 2000. If you plan to run Oracle8i Release 2 (8.1.6) on Windows 2000, do not install LSM 5.5. A version of LSM supported on Windows 2000 will be released in the future. Contact Oracle Support Services to inquire about the availability of LSM for Windows 2000.
The following Oracle Parallel Server command line tools in the \OPS_PREINSTALL directory are not supported on Windows 2000:
CRLOGDR.EXE
LETTERDELETE.EXE
DELETEDISK.EXE
LOGPARTFORMAT.EXE
These tools do not perform on Windows 2000 and will not report errors when they run. Use the Microsoft Computer Management tools to partition the disks.
Additionally, creating a large number of logical partitions may cause a significant increase in the time needed to reboot and launch the disk administration tools. "
Thank you for the update... So other than the few things mentioned above, there aren't any DNS problems or slow network performance problems (remors I've heard) with installing 8.16 Server on a Windows 2000 Server?
If this is the case then I think I will give it a try. I know that Microsoft and Oracle aren't on the best of terms, putting it lightly.
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