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dsn-less connections may be faster, but with Win2000 you get an occasional error with them which reports itself as an "unspecified error". It's highly annoying, it goes away of its own accord and then comes back again, and the only thing that fixes them is a dsn.
Or have they fixed this now?
From the traffic stats you entered, I don't think you need to upgrade to SQL Server. The traffic you're geting is still low and your code can definitely be optimized.