Thanks bob and cosy - all working well now.
Setup is: Client: Win2000 logged on (lower case) with user and password same as user setup on e-smith gateway. Using windows VPN. Running SQL client.
Server end: Peer-peer windows network, mottley bunch of computers running 98,98se,me and windows2000, fronted by e-smith 5.6 u4 box as gateway connected to ADSL modem with fixed IP. MSDE running on win2000 box. User and password into win2000 box same as client and e-smith. hosts file in c:\winnt includes name of win2000 box and IP.
With this can see windows network from outside and run the SQL client. Great!