Getting an "Incorrect syntax near 'COLLATE'" when highlighting a table in the Object Explorer< (4229517)

"Incorrect syntax near 'COLLATE'" error appearing when highlighting a table in the Object Explorer.

Compatibility mode is set to a value less than 80.

WORKAROUND:
Set the compatibility mode for your database to 80 or higher.

STATUS:
Waiting for fix in a future release of Toad for SQL Server

You can run the following query to check the compatibility level:
EXEC sp_dbcmptlevel 'YourDatabase'

You can run the following query to change the compatibility level:
EXEC sp_dbcmptlevel 'YourDatabase', 90

Additional information about SQL Server compatibility levels:

http://msdn.microsoft.com/en-us/library/ms178653.aspx

Compatibility Level:

80 = SQL Server 2000

90 = SQL Server 2005