One question, will the Version field be incremented automatically by SF or do we have to update this field in every change of the record to trigger the concurrency rule?
It will be auto-managed just as the SQL Server and others do.
Also what would be the reccomended concurrency rule for MS-SQL2005?
Regardless of the database, row versioning is always the best method as the query is far less complicated than when using all fields. This is actually a section that we cover during training and show the massive differences between using row versioning and any other type of checking.