Please, PLEASE avoid referencing systems tables, specifically system tables in system databases. In fact, the selected answer above probably won't compile in a Visual Studio 2013 Database Project
Table variables are fine, but recursion with a CTE is the answer:
DECLARE @str VARCHAR(max)
SET @str = 'QWERTY AnotherWord'
WITH Split(stpos,endpos)
AS(
SELECT 1 AS stpos, 2 AS endpos
UNION ALL
SELECT endpos, endpos+1
FROM Split
WHERE endpos <= LEN(@str)
)
SELECT
'character' = SUBSTRING(@str,stpos,COALESCE(NULLIF(endpos,0),LEN(@str)+1)-stpos)
,'charindex' = stpos
FROM Split
That said, the use for the code above is to get a table full of letters representing different permissions for a user. That is not the way to do this. Make a table with an ID, a permission code and a description then make a linking table between the users table and the new permissions table. this gives you the same abilities and doesn't make you solve dumb problems like this.