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SQL 2005 - clustered indexes

1. Unless the underlying field(s) is > 90% unique, a table scan will take place when SQL performs a WHERE.  Is that statement a correct generality?  If so, I will eliminate many indexes I have that are coming nowhere near > 90% unique.  That is, a lot of repetition in the data means no index is helpful.

2. Is there any net plus for a clustered index?  I assume the clustered index requires a lot of shuffling of the data if that is required getting the rows in their correct clustered order.  If this is the case, the clustered index does create a lot of overhead.  That would indicate the clustered index should be fields that are commonly used in the WHERE statements to justify the overhead?
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Aneesh
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it sounds like i have to look at what is going on in the background rather than develop a simple understanding of indexes.
Simple is a good beginning, but don't stop there ;-)