Source: Knowledge Base Product: Microsoft SQL Server 2005 Enterprise X64 Edition, SQL Server 2005 Enterprise Edition & SQL Server 2005 Standard Edition Notification Contents: New FIX: Error message when you run a long stored procedure that is encrypted in SQL Server 2005: "A stack overflow occurred...

I just ran across a white paper from Microsoft called "Batch Compilation, Recompilation, and Plan Caching Issues in SQL Server 2005." http://www.microsoft.com/technet/prodtechnol/sql/2005/recomp.mspx It provides a great explanation on how SQL Server 2005 deals with compilation and plan caching...