Current Limitations
As any other new feature, SQL Server's multi-instances has a lot of great and useful characteristics, but also has some limitations.
First of all, not all network libraries work with instances. Specifically, only named pipes, TCP/IP, and NWLink can be configured in a server with multiple instance installations. The remaining ones that don't work with SQL Server instances are Multiprotocol, AppleTalk, and Banyan VINES, which Microsoft didn't enhance in SQL Server 2000. This is the reason they cannot be used to communicate with named instances.
In a server with multiple instances, there's only one version of the client tools. For example, if there's a default instance running SQL Server 7.0, and then a SQL Server 2000 named instance ...
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