We are currently evaluation our hosting options and the cheapest suitable option we've found only has SQL Server 2000 MSDE as the db server. Does this have the ability to schedule jobs using SQL Agent?
If not, can I use a windows scheduled job to run scripts for me?
You can use SQL Agent on the MSDE version of SQL Server 2000 to schedule jobs. You will have to use a licensed copy of SQL Server, either the one that comes with MSDN or a retail copy and install the tools from it and then remotely connect to the MSDE installation of SQL server.
Yes you can SQL Agent is part of SQL 2000 MSDE unlike SQL2005 Express...
http://msdn.microsoft.com/en-us/library/ms165672(SQL.90).aspx
MSDE is at or over its support lifecycle:
http://blogs.msdn.com/sqlexpress/archive/2006/08/09/693650.aspx
So hopefully this host is using SQL Server Express (i.e. the free version of SQL Server 2005 or later) instead of MSDE.
Otherwise, Express doesn't come with a job scheduler. But you can always bundle up SQL commands either in .bat files or stored in .sql files and run them at the command prompt using oSQL (SQL Server 2000) or sqlcmd (SQL Server 2005). This would then let you use the windows scheduler.
Just answered this on your other question, but I'd recommend using Lazy Coding's SQLScheduler product. It's a nice bit of software that makes setting up and managing these a lot easier when you don't have the full version of SQL Server to hand
EDIT: I forgot to mention that it's also Freeware, so well worth grabbing a copy.