Blackbaud version 7 applications such as The Raiser's Edge, The Education Edge, The Financial Edge and Blackbaud Student Information System require that Windows accounts have VIEW SERVER STATE rights when SQL Server is set to use Windows Only Authentication. SQL Server 2000 does not require additional changes to grant VIEW SERVER STATE rights, it is set by default.
The reason why Blackbaud applications need to have view server state rights is that they implement pessimistic locking on their own data "entities". A data entity usually spans multiple tables (vendors, constituents). This allows users to be able to edit all fields of a record with the knowledge that they will never lose their changes due to another user concurrently editing the same record.
The built-in locking done by SQL server is not enough to solve this issue, since after the select statements are executed, there is usually a period of time when the user is editing the records on a windows form. To cover this period of time, we create a lock in the same table that SQL Server uses for all the other locks. The use of that table was granted to all users in SQL 2000 and started requiring View Server State rights in SQL Server 2005 to allow for a more fine control of user rights.