The first thing to do to reduce CPU utilization is to understand what is causing the excessive cycles. Look in Task Manager's processes to determine what is using the most CPU. Based on that information you can determine whether or not the utilization is excessive or not. Post back your findings.
The best formula for sizing your hardware for SMS 2.0, is to ignore the minimum requirements from Microsoft. Rather, look through the requirements for SQL Server 2000 and use those for your hardware sizing. SMS needs disk, RAM and a highly available, fast network connection.
This was first published in May 2003