In SQL Server 2005 there is no longer a 8060 byte row limit. However pages within the database are still 8060 bytes so if a row goes over this limit the data goes into an overflow page. This has a performance impact when querying against and updating rows that use the overflow area since it does certain bits of synchronously as opposed to asynchronously.
The main issue is that you get no warning when the table is created that your table definition goes over the limit like you did on SQL 2000. When you restore a SQL 2000 database or set compatibility mode to SQL 2000 on a database then it still works in this new way so old SQL 2000 suddenly get this new feature
Whilst this might have the advantage that your insert statements will work the downside is because there is no warning when your table schema reaches 8060 you have to take extra steps if you want to ensure you stay within the 8060 byte limit.