Thanks for the input. In my situation, company A has nothing to do with company B, no data will ever need to be shared. They are in no way related. The databases will all (one or many) reside on our application server and will only be accessed via an ASP.NET application. There will be no components off the centralized server.
The reasons I like the idea of having a DB for each customer:
1) security will be easier
2) the db will be smaller as will all queries and load times
3) customizations will be easier (if needed down the road)
4) "one database to rule them all scares me". I would rather have one pissed off customer if something goes wrong
I like the idea of a single database because:
1) schema update will be A LOT easier, unless there is an easy way I don't know to apply a DDT schema against X # of databases. Can this be scripted in some way?
2) We plan to have about 20 company DB's, but looking ahead I can see that if I have the need for more then administration become an issue (nice problem to have I guess = too many customers

)
I appreciate all your input, this is a great community. Happy 4th !!!
Keith Chisarik