.Net 1.0 Service Pack 3 problem?

Hello;

The following code has been executing fine until we installed service pack 3:

SqlCommand cmd = new SqlCommand("SET ARITHABORT ON", sqlConnection);
cmd.ExecuteNonQuery();

Other SET commands are fine, ARITHABORT seems to be the only one throwing an exception:

"System.Data.SqlClient.SqlException: OLE DB provider ''OpenXML'' reported an error. The provider did not give any information about the error.
OLE DB error trace [OLE/DB Provider ''OpenXML'' IRowset::RestartPosition returned 0x80004005: The provider did not give any information about the error.].

The command is executed prior to calling a stored proc that uses openXML. I am running .Net 1.0. Has anyone out there experienced this? If so, could you provide any additional info if possible? Thanks much.