Linked Server Update query running very slow

I have a 2005 sql server which is linked to 2000 sql server. I am trying to run an update query on the 2000 database. it does get updated but it takes a long time to run even one single row. I have defined a primary key on the destination table. I checked the collation too. I have the same problem as this post, only that the solutions there is not solving mine.

https://www.experts-exchange.com/questions/23301337/SQL-2005-2000-linked-servers-Could-not-create-an-acceptable-cursor.html?sfQueryTermInfo=1+join+link+server+updat+us

I had the same error. Now I am able to get rid of the error, but the query to update a single row is 4 minutes.

declare @tblSource table
(intapplicantid int primary key,
txtstatus varchar(200))

insert into @tblSource
select intapplicantid, txtstatus from tblapplicants
where intapplicantid = 124963

update dest
set dest.txtstatus = src.txtstatus
from @tblSource src
inner join
[mssql.new-hire1.com].[newhirever5].[newhirever5].[tblapplicants] dest
      on dest.intapplicantid = src.intapplicantid
collate SQL_Latin1_General_CP1_CI_AS

I am using temp table just to check the performance.

Is anything obvious in the above query? Please help!