I need to use AS400 source as Publisher and SQL Server as subscriber. Can I

With a third party product like data mirror you can.

You might also want to look at the samppub sample that ships with SQL 2000
for an example of how to roll your own solution.

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http://www.nwsu.com/0974973602.html

Looking for a FAQ on Indexing Services/SQL FTS
http://www.indexserverfaq.com
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