In WSUS 2.0, after approaching the WMSDE database size limit (2048MB), synchronization stops.

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If you have WSUS 2.0 installed on Windows 2000 SP4 server and not able to synchronize and approve the updates once the SUSDB size approaches to 2 GB. Then It may be 2 GB limit of WMSDE database.

In such cases you may get the following logs:

1. Event ID 17055 from source MSSQLSERVER.
 Description: CREATE/ALTER DATABASE failed because the resulting cumulative database size would exceed your licensed limit of 2048  MB per database.

2. Event ID 17052 from source MSSQLSERVER.
 Description: Could not allocate space for object 'tbXml' in database 'SUSDB' because the 'PRIMARY' filegroup is full.

You can follow the methods mentioned in the following article:
https://support.microsoft.com/default.aspx/kb/909456

In the above mentioned article, Method 2 from this article says:
"Upgrade the WSUS 2.0 installation to WSUS 2.0 Service Pack 1 (SP1). WSUS 2.0 SP1 upgrades WMSDE Service Pack 3 (SP3) to WMSDE Service Pack 4 (SP4) and fixes the 2-GB size limit."

I have seen the case where we installed the SP1 and it finished successfully without any error message. However we were still getting the same issue. We checked the WSUS 2.0 build version. It was 2.0.0.2620 (Which is WSUS 2.0 SP1 build)

You can check the version of the WMSDE on the server.
Run the following command using OSQl utility:

OSQL.exe -S machinename -E -Q "select @@version"

It might show the WMSDE SP3 build number(8.00.760) and it is known that 8.00.760 version has a 2GB database limit.

If this is the case then, download WMSDE SP4 from the following URL:
https://www.microsoft.com/downloads/details.aspx?FamilyID=8e2dfc8d-c20e-4446-99a9-b7f0213f8bc5&displaylang=en

Download the exe file.
Extract it and then installed it on the server.
After installation, rebooted the server.
Now you should see the WMSDE version as 8.00.2039. This version fixes the 2 GB limit.

Another workaround is to run this command to minimize the database (SUSDB) size

c:\programfiles\update services\tools> WSUSutil Deleteunneededrevisions

If you use an MSDE database in your WSUS implementation (for example, if you are using WSUS on a server running Windows 2000), you might need to run this command periodically when the database reaches its 2-GB limit because once the database is full, you cannot synchronize new updates to your server, add new computers, or import events from existing client computers.

Reference: Managing WSUS from the Command Line (https://technet.microsoft.com/en-us/library/cc720466.aspx)

NOTE: WSUS 2.0 SP1 support is ending on  30th April, 2009 (https://technet.microsoft.com/en-us/wsus/bb466202.aspx). So we should plan to migrate the WSUS 2.0 SP1 to WSUS 3.0 SP1 now. (WSUS 3.0 RTM support has already been ended in Feb 2009)