jon,
I had the same problem with MSSQL 7 and phpBB 2. I discovered it was a problem with one of the MSSQL schema files, /phpBB2/db/schemas/mssql_basic.sql
the line number php gives you is misleading, as it's not the real location of problem, just where the problem manifests itself (perfectly fine query code trying to run bad ms-sql)
the problem is on line 92 in my schema file, the line that adds an anonymous user to your phpbb_users table .. I just commented the line out (--), and re-ran the phpBB install, and it worked
the line in question -
INSERT INTO
phpbb_users
(user_id, username, user_level, user_regdate, user_password,
user_email, user_icq, user_website, user_occ, user_from,
user_interests, user_sig, user_viewemail, user_style,
user_aim, user_yim, user_msnm, user_posts, user_attachsig,
user_allowsmile, user_allowhtml, user_allowbbcode,
user_allow_pm, user_notify_pm, user_allow_viewonline,
user_rank, user_avatar, user_lang, user_timezone, user_dateformat,
user_actkey, user_newpasswd, user_notify, user_active)
VALUES
( -1, 'Anonymous', 0, 0, '', '', '', '', '', '', '', '',
0, NULL, '', '', '', 0, 0, 1, 0, 1, 0, 1, 1, NULL, '',
'', '', '', '', '', 0, 0);