Background Knowledge
I’m running PHP v5.2.9-2 with SQL Server 2005 Express on Windows Server 2003 R2 SP2.
Error Message
Warning: mssql_query() [function.mssql-query]: message: Unicode data in a Unicode-only collation or ntext data cannot be sent to clients using DB-Library (such as ISQL) or ODBC version 3.7 or earlier. (severity 16)
Solution
Specify the database columns within your database query (select filed1, field2 from foo). Avoid doing queries with the wildcard (*), select * from foo.
Source: PHP Manual on MSSQL_Query()