CASE Is Not Supported Error In A View

CASE is not supported Error in a View

In SQL 7, when a view parses the below code, it generates a 'CASE is not Supported' error'; however, it will still generate and show the field with the CASE statements correctly; What might cause this error?

(Other useful info: this code is from a converted SQL 6.5 DB and the SQL 7 is running in compatibility mode, i inserted '' to remove concantenation of NULL problems;)

Example of display:
10132 Hampton, VA: A. Deepak Publishing

SELECT PublisherID, Info = CASE WHEN City IS NOT NULL
THEN City + CASE WHEN State IS NOT NULL
THEN ', ' + State ELSE '' END + ': ' ELSE ''
END + Publisher
FROM tblLibraryPublishers

Thank you!
Llyal