SharePoint 2007 compatibility with SQLServer

Office SharePoint Server 2007 is compatible with

- SQL Server 2000 with the latest service pack (which is SQL Server 2000 Service Pack 4)

- Microsoft SQL Server 2005 SP1 or later

Office SharePoint Server 2007 SP1 is compatible with

- SQL Server 2008

Office SharePoint Server 2007 SP2 is compatible with

- SQL Server 2008 R2

 But Office SharePoint Server 2007 is not compatible with SQL Server 2012. 

Key Excerpts

Office SharePoint Server 2007 also supports SQL Server 2008 R2. Ensure that you have installed Office SharePoint Server 2007 with Service Pack 2 (SP2) or later.

Office SharePoint Server 2007 does not support SQL Server 2012 or later versions of SQL Server.

Reference