it looks like SQL Server 2008 has nanosecond precision
if you run the following
DECLARE @t time
SELECT @t ='0:0'
SELECT @t AS Time1,dateadd(ms,1,@t) AS TimeMilli,
dateadd(ns,10000,@t) AS TimeNano1,dateadd(ns,100,@t) AS TimeNano2
The output is this
Time1 00:00:00.0000000
TimeMilli...