Updated on 1/28/2008 to include link to post related to web application timer jobs and SharePoint restore. 

There comes a time when SharePoint databases will have to be moved to another database server. The problem is that it is not that easy to just move the databases to a new database server and have everything work. In SharePoint 2003, it was realatively simple to move all the databases, but in 2007 there is alot more involved with communication between the databases making it a more complicated scenario.Outlined below are the steps taken to move a SharePoint farm to a new database server.

1. Perform a farm level backup of the current farm using the SharePoint backup utility in Central Administration. Make sure the backup gets saved to an accesible location either on this server or on the network.
2. Run the SharePoint Products and Technologies Configuration Wizard to disconnect the server from the configuration database. If there is only one server in farm, then all you have to do is that server. If there are multiple servers in the farm, make sure the server running central administration is the last server disconnected from the farm. I don't believe this is a requirement, but I would recommended it anyway.
3. Once all the servers have been removed from the farm. Run the SharePoint Products and Technologies Configuration Wizard on the server to host the central administration site first to create a new SharePoint farm. Once Server is configured, run the configuration wizard on the remaining servers adding them to the new SharePoint farm.
4. Start both the Office SharePoint Services Search and the Windows SharePoint Services Search services
   
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5. Read the post about web application timer jobs before moving to step 6 VERY IMPORTANT
   *** UPDATE ***
   
6. Restore the backup made in step 1 using the SharePoint restore utility in Central Administration. You will have to supply the file path to the files that were backed up
   
1. There are 4 steps to restoring from the backup. Step 1 is to locate the backup set that was ran in Step 1
   
   
   
2. Step 2 is selecting a backup to restore from the location specified in the previous step
   
   
   
3. Step 3 is selecting a component of the backtup to restore... in this case you want to restore at the farm level
   
   
   
4. Step 4 is to select the restore options. In this step you want to select new configuration for the type of resture and besure to go through all the databases, web applicatons, and SSP information to specifiy the new database server name and database file locations for each item. Double check everything before hitting ok.
   
   
   
5. Finally after all selections are made and the restore process is kicked off, you see a summary of the restore in progress.
   
   
   
7. Once restore is complete the databases should be in their new location and the SSP should be back up and running. To finish the move, you must reconfigure the farm using central administration. Then kick off a full crawl to repopulate the content index.