What will be better approach (pull replication or DTS package) in
following case?

Case:
Sql Server 2005 database (1) will have data created by small
application (all data will go only to one table),
This data has to be used by legacy application that uses Sql Server
2000 (2) database.

Transactional push replication will be set from server (2) to server
(1) to update some tables that small application will use for lookup
data.

We can't set push replication from server (1) to server (2) because of
location of these servers, server (1) can't "see" server (2), but
server (2) can "see" server (1).

Will appreciate any help in selecting better approach.
Gail

Not too sure I can follow your topology, but if the choice is between
transactional replication and DTS for a single table and single subscriber,
then I'd probably go for transactional replication. This'll allow just
application of data changes so you won't have to drop all the data each
time. The table will remain available (online) during synchronization. There
will be lower latency. Also, you can easily see what changes are waiting to
be delivered.
Cheers,
Paul Ibison SQL Server MVP, www.replicationanswers.com .