I have some sql 2005 databases I need to maintain on a web hosts sql server. I was able to connect to the sql server fine with sql management studio 2008 but when I tried to expand the databases like I got an error like this.
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Clik here to view.
I found this connect item which explains how to fix the issue
http://connect.microsoft.com/SQLServer/feedback/ViewFeedback.aspx?FeedbackID=354291
This seems to be similar to SSMS Object Explorer issue discussed here:
http://forums.microsoft.com/msdn/showpost.aspx?postid=3531315&isthread=false&siteid=1&sb=0&d=1&at=7&ft=11&tf=0&pageid=0
Please try using the following workaround and let us know if that helps:
1) Bring Object Explorer Details window by selecting View --> Object Explorer Details in menu (or hitting F7)
2) In Object Explorer window click at Databases folder
3) In Object Explorer Details window right-click at the column header and deselect Collation
4) Refresh Databases folder.
Hope this helps
Image may be NSFW.
Clik here to view.

I found this connect item which explains how to fix the issue
http://connect.microsoft.com/SQLServer/feedback/ViewFeedback.aspx?FeedbackID=354291
This seems to be similar to SSMS Object Explorer issue discussed here:
http://forums.microsoft.com/msdn/showpost.aspx?postid=3531315&isthread=false&siteid=1&sb=0&d=1&at=7&ft=11&tf=0&pageid=0
Please try using the following workaround and let us know if that helps:
1) Bring Object Explorer Details window by selecting View --> Object Explorer Details in menu (or hitting F7)
2) In Object Explorer window click at Databases folder
3) In Object Explorer Details window right-click at the column header and deselect Collation
4) Refresh Databases folder.
Hope this helps