Any time an MS SQL Server error is generated durning any TQuery
transaction, Delphi hangs. THis happens even for instances where I have
specifically coded a RAISERROR statement in a stored procedure and then
called that stored procedure using a TQuery. Is there any way to trap these
server-generated errors?

With MyQuery Do Begin
  SQL.Add (.....)
  try
    Open;
  except
     SQL.SaveToFile ('_error.sql');
    raise
  end;
  ...
  Close
End;

So you can easily test the saved sql-statement in ISQL. You also might
want to verify the MAX QUERY TIME parameter in the ALIAS definition.

Regards

Marcus