Our posts crossed again. Your field was cut to N(2) because your first value in the field was a 2-digit number. If you trying to reduce the number of numeric positions to, say, 5 instead of 2, try padding the value:
UPDATE r00_test SET ups_active = VAL(PADL(ALLTRIM(STR(UPS_active)),5,'0')
But I would use ALTER TABLE instead.
If reducing the field size is not what are you trying to do, then what?