how to change server collation in sqlserver 2005

You can use alter database statement to change the collation, is this what you looking for!!

<P mce_keep="true">I guess you are looking to change server collation, which is a complex operation as you see following process:</P><UL><LI>Make sure you have all the information or scripts needed to re-create your user databases and all the objects in them.<BR></LI><LI>Export all your data using a tool such as bulk copy.<BR></LI><LI>Drop all the user databases.<BR></LI><LI>Rebuild the <STRONG>master</STRONG> database specifying the new collation in the SQLCOLLATION property of the <STRONG>setup</STRONG> command. For example:<BR><DIV class="" id=ctl00_rs1_mainContentContainer_ctl06_other><TABLE class=""><TBODY><TR><TD class="" style="BORDER-RIGHT: 0px; PADDING-RIGHT: 0px; BORDER-TOP: 0px; PADDING-LEFT: 0px; PADDING-BOTTOM: 0px; MARGIN: 0px; BORDER-LEFT: 0px; PADDING-TOP: 0px; BORDER-BOTTOM: 0px"><DIV class=CodeSnippetTitleBar><DIV class=CodeDisplayLanguage></DIV><DIV class=CopyCodeButton><A class=copyCode href="javascript:CopyCode('ctl00_rs1_mainContentContainer_ctl06other');"><IMG height=9 src="http://i.technet.microsoft.com/platform/Controls/CodeSnippet/resources/copy_off.gif" align=middle border=0> Copy Code</A></DIV></DIV></TD></TR><TR><TD class="" style="BORDER-RIGHT: 0px; PADDING-RIGHT: 0px; BORDER-TOP: 0px; PADDING-LEFT: 0px; PADDING-BOTTOM: 0px; MARGIN: 0px; BORDER-LEFT: 0px; PADDING-TOP: 0px; BORDER-BOTTOM: 0px"><PRE class=libCScode id=ctl00_rs1_mainContentContainer_ctl06other space="preserve">setup.exe /q /ACTION=RebuildDatabase /INSTANCENAME=MSSQLSERVER /SAPWD="sa-pwd" /SQLSYSADMINACCOUNTS="BUILTINADMINISTRATORS" /SqlCollation=SQL_Latin1_General_CP1_CI_AI</PRE></TD></TR></TBODY></TABLE></DIV></LI><LI>Create all the databases and all the objects in them.<BR></LI><LI>Import all your data. </LI></UL><P>Rather you can follow what Hemant referred above to set database alone. </P>