SQR v2.5 & Sybase v12.0 out of locks

[Tony Martino <Tony.Martino@TRW.COM>]

We are currently running some old legacy SQR v2.5 programs under DOS 6.2 (not 
Windows) accessing Sybase SQL Server v11.0.3.2 on Windows NT 4.0 using 
DB-Library.  We are trying to upgrade to Sybase Adaptive Server Enterprise 
v12.0.0.2 on Windows 2000, but one of our SQR programs is getting an error that 
SQL Server has run out of locks (this can't be true, because the new server has 
twice as many locks as the old server, and the program only tried to update one 
row).  Can anyone provide any assistance as to what is causing the error?  Did 
this old unsupported version of SQR finally "break" with the Sybase upgrade?  
Is there a simple supported version of SQR that we could try to see if this 
program will work without any rewrite?