In SQL Server 2000, SQL Server Agent can write logs to the file system for jobs that are owned by members of the sysadmin ...

In SQL Server 2000, SQL Server Agent can write logs to the file system for jobs that are owned by members of the sysadmin fixed server role. If the job owner is not a member of the sysadmin role and if the proxy account is enabled, SQL Server Agent can write logs to the file system by using the credentials of the proxy account.  After you upgrade, jobs that are owned by users who are not members of the sysadmin fixed server role can no longer write logs to the file system. Instead, these users can select the option to write their logs to a table in the msdb database. Members of the sysadmin role can still write log files to the file system.