When implementing Data Transformation Services (DTS) lookup queries, consider the following:
If the transformation function can use an SQL statement instead of a lookup (for example, a SELECT statement with a join clause), performance can be greatly improved.
A lookup query may fail (for example, if it attempts to insert a row with a duplicate key). If a lookup fails, no further processing takes place for the source row. Lookup failure counts as one error against the maximum errors property of the containing task.