How about this? Assuming data coming into your function as @thisData:
BEGIN
DECLARE @thisText VARCHAR(255)
SET @thisText = REPLACE(RTRIM(REPLACE(@thisData, '0', ' ')), ' ', '0')
IF SUBSTRING(@thisText, LEN(@thisText), 1) = '.'
RETURN STUFF(@thisText, LEN(@thisText), 1, '')
RETURN @thisText
END