Error(Check Datasets): Underlying DBMS error [Microsoft SQL Server Native Client 10.0: CREATE XML INDEX failed because the following SET options have incorrect settings: 'ARITHABORT'. Verify that SET options are correct for use with indexed views and/or indexes on computed columns and/or filtered indexes and/or query notifications and/or XML data type methods and/or spatial index operations.]
I found the solution it is just setting the comparability level of the current data. In my case I was migrating from SQL server 2000 to 2005. Thus used the following to fix the compatibility problem
