Hi there. Where did you get those queries? You didn't execute them, did you? There is at least one major bug in query #2. I wouldn't recommend using those.
But, more importantly, none of those scripts are the one that is causing the error (at least I don't think so). I need to see the query from the 3rd party application that is causing this error:
System.Exception: Cannot load config : Cannot resolve collation conflict between "SQL_Latin1_General_CP1_CS_AS" and "Latin1_General_CI_AI" in CASE operator occurring in SELECT statement column 5.
Also, for changing collations, you might want to take a look at the following post of mine that goes into detail about the undocumented "sqlservr.exe -q" option: