rebuild index failed

hi,

The rebuild index fails with the following error message.i searched on internet for this error but dint find any solution

Error:

Executing the query "ALTER INDEX [Transactions_Key_myDay] ON [dbo].[EXC..." failed with the following error: "ALTER INDEX failed because the following SET options have incorrect settings: 'ARITHABORT'. Verify that SET options are correct for use with indexed views and/or indexes on computed columns and/or filtered indexes and/or query notifications and/or XML data type methods and/or spatial index operations.". Possible failure reasons: Problems with the query, "ResultSet" property not set correctly, parameters not set correctly, or connection not established correctly.

Error Number:-1073548784

we are currently working on sql server 2008 with  database compatbility 100

 Tools -->Options and expand Query Execution --> SQL Server --> Advanced --> ARITHABORT box is checked 

please help me with this error

Thanks