Source Server does not meet minimum requirements for migration - SBS2003 to SBS 2008

I am migrating SBS 2003 to SBS 2008. I have followed the 81 page microsoft guidelines here: http://www.microsoft.com/downloads/details.aspx?FamilyID=52b7ea63-78af-4a96-811e-284f5c1de13b&displaylang=en and have run the migration prepartion tool which completed successfully and then requested a server reboot which I did.

I created the SBSAnswerFile and saved it to USB memory stick. The SBS 2008 server detects it and begins SBS Setup in migration mode which gives the error message attached. Clicking "check again" doesnt do anything and repeats the error.

I've confirmed good connectivity from the SBS 2008 server to the SBS 2003 server and vice versa via pinging each machine from the other. The account I created on the SBS 2003 server which I used to run the Migration prep. tool is an Domain, Schema and Enterprise admin. I have confirmed Exchange 2003 is in native mode, confirmed domain functional level is at 2003. Have created a new admin account made it a member of the relevant groups and set a complex password to see if that helps but still no joy.

I am installing an HP ML330 server - tried via smart start and via the windows sbs dvd, both result in the same issue. Full log is available below of the setup but is a bit long winded. Anyone any ideas?

alt text http://www.experts-exchange.com/images/197800/SBSsetup.bmp

[2944] 100812.181428.4282: Setup: Screen Saver SubKey opened.
[2944] 100812.181428.4282: Setup: Finished disabling the Screen Saver.
[2944] 100812.181428.4282: Setup: Get Stage = <null>
[2944] 100812.181428.4282: Setup: Current setup stage is: Beginning
[2944] 100812.181430.4406: Setup: Adding Migration Wizard component.
[2944] 100812.181430.4406: Setup: Get Stage = <null>
[2944] 100812.181430.9086: Setup: Changing NIC Verification Page state to NoNic.
[2944] 100812.181432.0474: Setup: Skipping OneCare since it is not available in this version.
[2944] 100812.181432.2034: Setup: No flags found, making FSE visible to the user.
[2944] 100812.181432.2034: Setup: Defaulting FSE install to: True
[2944] 100812.181432.2658: Setup: Launching the Wizard!
[2944] 100812.181432.2658: Setup: Get Stage = <null>
[2944] 100812.181432.2658: Setup: Running requirement check: DiskSpaceRequirement
[2944] 100812.181432.2814: Setup: The system partition has a total size of 500049113088, with a requirement of 40894464000 and recommended of 61865984000.
[2944] 100812.181432.2814: Setup:       Requirement passed.
[2944] 100812.181432.2814: Setup: Running requirement check: RamRequirement
[2944] 100812.181432.4374: Setup: The total size of the RAM is: 8578281472, with a requirement of 3355443200.
[2944] 100812.181432.4374: Setup:       Requirement passed.
[2944] 100812.181432.4374: Setup: Running requirement check: DriveLetterRequirement
[2944] 100812.181432.4530: Setup: The system drive letter is: C.
[2944] 100812.181432.4530: Setup:       Requirement passed.
[2944] 100812.181432.4840: Setup: Successfully set the Time Zone to GMT Standard Time.
[2944] 100812.181432.6556: Setup: Trying to find valid NIC.
[2944] 100812.181433.1236: CoreNet: Retreiving MAC Address of the NIC to ignore from InfoXmlConfig
[2944] 100812.181433.1548: CoreNet: Info xml file does not exist: C:\Program Files\Windows Small Business Server\Data\Info.xml
[2944] 100812.181433.1548: CoreNet: Retrieving MAC Address of the NIC to ignore from NetworkConfig
[2944] 100812.181433.2328: CoreNet: No NICs to ignore in NetworkConfig
[2944] 100812.181439.3012: CoreNet: Added NIC: Local Area Connection
[2944] 100812.181439.3636: CoreNet: Added NIC: Local Area Connection 2
[2944] 100812.181439.6288: Setup: Found 2 NICs
[2944] 100812.181452.0933: Setup: Found a connected NIC: Broadcom NetXtreme Gigabit Ethernet #2
[2944] 100812.181452.2805: Setup: Validating that the IP is non-routable: 192.168.0.23
[2944] 100812.181452.3429: Setup: Found a connected NIC with a Non-Routable IP: Broadcom NetXtreme Gigabit Ethernet #2
[2944] 100812.181452.3429: Setup: Need to show NIC Verification Page: False
[2944] 100812.181452.3741: CoreNet: Retreiving MAC Address of the NIC to ignore from InfoXmlConfig
[2944] 100812.181452.3741: CoreNet: Info xml file does not exist: C:\Program Files\Windows Small Business Server\Data\Info.xml
[2944] 100812.181452.3741: CoreNet: Retrieving MAC Address of the NIC to ignore from NetworkConfig
[2944] 100812.181452.3741: CoreNet: No NICs to ignore in NetworkConfig
[2944] 100812.181453.0293: CoreNet: Added NIC: Local Area Connection
[2944] 100812.181453.0917: CoreNet: Added NIC: Local Area Connection 2
[2944] 100812.181453.3569: CoreNet: Starting network configuration in migration
[2944] 100812.181454.2929: CoreNet: TCP/IP Physical Nic Broadcom NetXtreme Gigabit Ethernet #2 (Local Area Connection 2)
[2944] 100812.181454.3241: CoreNet: 192.168.0.254 is reachable with current settings
[2944] 100812.181454.3553: CoreNet: Retrieving local router override ip from NetworkConfig
[2944] 100812.181454.3553: CoreNet: No local router override ip is defined in NetworkConfig
[2944] 100812.181454.4021: CoreNet: Checking 192.168.0.254 using fake entry 42.42.1.0...
[2944] 100812.181454.4021: CoreNet: Received TtlExpired from 192.168.0.254 using Ping(42.42.1.0)
[2944] 100812.181454.4021: CoreNet: 192.168.0.254 passed the routing test
[2944] 100812.181454.4177: CoreNet: Starting Router Retrieval with IP 192.168.0.254
[2944] 100812.181454.4177: CoreNet: http has not been checked yet -- checking 192.168.0.254
[3480] 100812.181454.4801: CoreNet: UPNP: Searching for UPnP routers
[2944] 100812.181454.4957: CoreNet: Checking uri http://192.168.0.254/
[2944] 100812.181456.4613: CoreNet: Config web site on router 192.168.0.254 available!
[2944] 100812.181456.4613: CoreNet: Found new router 192.168.0.254 with capabilities HttpManualConfigPossible
[3172] 100812.181503.5125: CoreNet: UPnP: Search completed
[2944] 100812.181503.7466: CoreNet: Saving router: 192.168.0.254
[2944] 100812.181504.0898: CoreNet: Disabling all NICs except for Broadcom NetXtreme Gigabit Ethernet #2 (Local Area Connection 2)
[2944] 100812.181504.3862: CoreNet: NIC Broadcom NetXtreme Gigabit Ethernet (Local Area Connection) was already disabled
[2944] 100812.181504.4954: CoreNet: Setting local NIC to static: IP=192.168.0.2 mask=255.255.255.0 gateway=192.168.0.254
[2944] 100812.181504.4954: CoreNet: Setting static IP: 192.168.0.2/255.255.255.0
[2944] 100812.181504.5110: CoreNet: netsh: interface ip set address 11 static address=192.168.0.2 mask=255.255.255.0
[2944] 100812.181509.1754: CoreNet: Address 192.168.0.2 successfully bound to socket.
[2944] 100812.181509.1754: CoreNet: netsh: interface ip delete address 11 address=0.0.0.0 gateway=all
[2944] 100812.181509.2534: CoreNet: netsh: interface ip add address 11 gateway=192.168.0.254 gwmetric=5
[2944] 100812.181509.4562: CoreNet: Setting DNS servers on local NIC Local Area Connection 2(Broadcom NetXtreme Gigabit Ethernet #2)
[2944] 100812.181509.6434: Setup: Completed networking configuration, now checking migration information.
[2944] 100812.181518.1298: Setup: Pinging old server name.
[2944] 100812.181518.4574: Setup: Ping reply status = Success
[2944] 100812.181518.5042: Setup: Connecting to domain and validating credentials.
[2944] 100812.181518.9254: Setup: Successfully connected to the source domain: Davy.local
[2944] 100812.181518.9254: Setup: Did not need to fix up domain name.
[2944] 100812.181519.2530: Setup: Found user: CN=sysadmin2,OU=SBSUsers,OU=Users,OU=MyBusiness,DC=Davy,DC=local.  Determining group memberships
[2944] 100812.181519.2686: Setup: Member of AccountDomainAdminsSid=True
[2944] 100812.181519.2686: Setup: Member of AccountEnterpriseAdminsSid=True
[2944] 100812.181519.2686: Setup: Member of AccountSchemaAdminsSid=True
[2944] 100812.181519.2686: Setup: Credentials are valid.
[2944] 100812.181527.6771: Setup: Pinging old server name.
[2944] 100812.181527.9891: Setup: Ping reply status = Success
[2944] 100812.181527.9891: Setup: Connecting to domain and validating credentials.
[2944] 100812.181528.0047: Setup: Successfully connected to the source domain: Davy.local
[2944] 100812.181528.0047: Setup: Did not need to fix up domain name.
[2944] 100812.181528.0047: Setup: Found user: CN=sysadmin2,OU=SBSUsers,OU=Users,OU=MyBusiness,DC=Davy,DC=local.  Determining group memberships
[2944] 100812.181528.0047: Setup: Member of AccountDomainAdminsSid=True
[2944] 100812.181528.0203: Setup: Member of AccountEnterpriseAdminsSid=True
[2944] 100812.181528.0203: Setup: Member of AccountSchemaAdminsSid=True
[2944] 100812.181528.0203: Setup: Credentials are valid.
[2944] 100812.181528.0203: Wizard: Admin:QueryNextPage(null) = sbssetup.networkprogress
[2944] 100812.181528.0203: Wizard: TOC sbssetup.networkprogress is on ExpectedPath
[2944] 100812.181528.0515: Wizard: sbssetup.networkprogress entered
[2944] 100812.181528.0515: Setup: Setting the Setup Stage to NetworkProgress.
[2944] 100812.181528.0515: Setup: Setting Stage = NetworkProgress
[2944] 100812.181528.0515: Setup: Setting ShowBillboards to False
[2944] 100812.181528.1295: Wizard: Admin:QueryNextPage(sbssetup.networkprogress) = sbsetup.schemaupdate
[2944] 100812.181528.1295: Wizard: TOC sbsetup.schemaupdate is on ExpectedPath
[2944] 100812.181528.1295: Wizard: Admin:QueryNextPage(sbsetup.schemaupdate) = sbssetup.companyinformation
[2944] 100812.181528.1295: Wizard: TOC sbssetup.companyinformation is on ExpectedPath
[2944] 100812.181528.1295: Wizard: Admin:QueryNextPage(sbssetup.companyinformation) = sbssetup.optionalcomponents
[2944] 100812.181528.1295: Wizard: TOC sbssetup.optionalcomponents is on ExpectedPath
[2944] 100812.181528.1295: Wizard: Admin:QueryNextPage(sbssetup.optionalcomponents) = sbssetup.mainprogress
[2944] 100812.181528.1295: Wizard: TOC sbssetup.mainprogress is on ExpectedPath
[2944] 100812.181528.1295: Wizard: Admin:QueryNextPage(sbssetup.mainprogress) = sbssetup.finish
[2944] 100812.181528.1295: Wizard: TOC sbssetup.finish is on ExpectedPath
[2944] 100812.181528.1295: Wizard: Admin:QueryNextPage(sbssetup.finish) = null
[2944] 100812.181528.1295: Wizard: ----------------------------------
[2944] 100812.181528.1295: Wizard: The pages visted:
[2944] 100812.181528.1295: Wizard: Current Page := [TOC sbssetup.networkprogress]
[2944] 100812.181528.1295: Wizard: [invisible]  : TOC sbsetup.schemaupdate
[2944] 100812.181528.1295: Wizard: [TOC]        : TOC sbssetup.companyinformation
[2944] 100812.181528.1295: Wizard: [TOC]        : TOC sbssetup.optionalcomponents
[2944] 100812.181528.1295: Wizard: [invisible]  : TOC sbssetup.mainprogress
[2944] 100812.181528.1295: Wizard: [TOC]        : TOC sbssetup.finish
[2944] 100812.181528.1295: Wizard: Step 0 of 3
[4000] 100812.181528.1607: Setup: Get InProgress = <null>
[4000] 100812.181528.1607: Setup: Transfering the content of the Property Bag into the info.xml since we will start running tasks.
[4000] 100812.181528.1607: Setup: Serialize into info xml file
[4000] 100812.181530.0639: TaskManagement: Loaded cost file
[4000] 100812.181530.0639: Setup: Adding delegates to the TME
[4000] 100812.181530.0639: Setup: Launching the TME
[4000] 100812.181530.0639: Setup: Setting InProgress = True
[4000] 100812.181530.0795: TaskManagement: Loading TaskProcessors.
[4000] 100812.181530.0951: TaskManagement: Loaded ("EXE", "C:\Program Files\Windows Small Business Server\Bin\TaskProcessors.dll") with success.
[4000] 100812.181530.0951: TaskManagement: Loaded ("NET", "C:\Program Files\Windows Small Business Server\Bin\TaskProcessors.dll") with success.
[4000] 100812.181530.0951: TaskManagement: Loaded ("MSI", "C:\Program Files\Windows Small Business Server\Bin\TaskProcessors.dll") with success.
[4000] 100812.181530.0951: TaskManagement: Loaded ("Service", "C:\Program Files\Windows Small Business Server\Bin\TaskProcessors.dll") with success.
[4000] 100812.181530.0951: TaskManagement: Using the ProgressDevianceThreshold of 5 from the TaskProcessor EXE since there is no override.
[4000] 100812.181530.0951: TaskManagement: Updating TaskProcessor MSI with a ProgressDevianceThreshold of 100.
[4000] 100812.181530.0951: TaskManagement: Using the ProgressDevianceThreshold of 5 from the TaskProcessor NET since there is no override.
[4000] 100812.181530.0951: TaskManagement: Using the ProgressDevianceThreshold of 5 from the TaskProcessor Service since there is no override.
[4000] 100812.181530.1107: TaskManagement: Building progress bar data.
[4000] 100812.181530.1263: TaskManagement: Expected Task Costs:
[4000] 100812.181530.1263: TaskManagement: TaskName: FixRegkeyPermissionsTask, Cost: 0.1095162
[4000] 100812.181530.1263: TaskManagement: TaskName: UpdateSetupBeforeNetworking, Cost: 30.43587
[4000] 100812.181530.1263: TaskManagement: TaskName: EnableWFNetworkDiscovery, Cost: 0.2852564
[4000] 100812.181530.1263: TaskManagement: TaskName: NetworkDiscovery, Cost: 53.38156
[4000] 100812.181530.1263: TaskManagement: TaskName: UpdateSetupAfterNetworking, Cost: 29.50424
[4000] 100812.181530.1419: Task: Running Task("FixRegkeyPermissionsTask") with TaskProcessor("NET").
[4000] 100812.181530.1575: Task: Beginning of task FixRegkeyPermissions
[4000] 100812.181530.1575: Task: Fixing ACL on: C:\Program Files (x86)\Microsoft SQL Server
[4000] 100812.181530.6255: Task: In Task FixRegkeyPermissionsTask: 
[4000] 100812.181530.6255: Setup: Task FixRegkeyPermissionsTask succeeded.
[4000] 100812.181530.6255: Task: End of Task FixRegkeyPermissions
[4000] 100812.181530.6255: Task: Task ("FixRegkeyPermissionsTask") execution complete.
[4000] 100812.181530.8439: Task: Running Task("UpdateSetupBeforeNetworking") with TaskProcessor("NET").
[4000] 100812.181530.8751: Task: Beginning of UpdateSetupTask
[4000] 100812.181530.8907: Microsoft Updates: MUAgent: OptInToMicrosoftUpdates Start
[4000] 100812.181530.8907: Microsoft Updates: MUAgent: ValidateClientSoftwareVersion Start
[4000] 100812.181530.9843: Microsoft Updates: MUAgent: ValidateClientSoftwareVersion End
[4000] 100812.181531.3275: Microsoft Updates: MUAgent: Registering Microsoft Update Service with WUA
[4000] 100812.181531.4835: Microsoft Updates: MUAgent: Registering Microsoft Update with AU
[4000] 100812.181531.4991: Microsoft Updates: MUAgent: OptInToMicrosoftUpdates End
[4000] 100812.181531.5147: Microsoft Updates: MUAgent: Update: Start
[4000] 100812.181531.5147: Microsoft Updates: MUAgent: Search: Start
[4000] 100812.181531.5459: Microsoft Updates: MUAgent: Starting Search
[4000] 100812.181531.5459: Microsoft Updates: MUAgent: IncludePotentiallySupersededUpdates False
[4000] 100812.181531.5459: Microsoft Updates: MUAgent: Online True
[4000] 100812.181531.5459: Microsoft Updates: MUAgent: ClientApplicationID Small Business Server
[4000] 100812.181531.5459: Microsoft Updates: MUAgent: Search Phrase (CategoryIDs contains 'e6cf1350-c01b-414d-a61f-263d14d133b4' AND CategoryIDs contains '38dc25fb-bfcf-480b-a4ea-445751974d67' AND Type='Software' AND IsInstalled=0)
[4000] 100812.181531.5459: Microsoft Updates: MUAgent: Service ID 7971f918-a847-4430-9279-4a52d1efe18d
[3592] 100812.181937.2631: Microsoft Updates: MUAgent: ISearchCompletedCallback: Search completed
[4000] 100812.181937.2631: Microsoft Updates: MUAgent: Search return 0 total updates
[4000] 100812.181937.2787: Microsoft Updates: MUAgent: IdentifyUpdatesToDownloadAndInstall: Start
[4000] 100812.181937.2787: Microsoft Updates: MUAgent: Total Updates Identified to download and install = 0
[4000] 100812.181937.2787: Microsoft Updates: MUAgent: IdentifyUpdatesToDownloadAndInstall: End
[4000] 100812.181937.2787: Microsoft Updates: MUAgent: Search: End
[4000] 100812.181937.2787: Microsoft Updates: MUAgent: Update: End
[4000] 100812.181937.2787: Task: In Task UpdateSetupBeforeNetworking: 
[4000] 100812.181937.2787: Setup: Task UpdateSetupBeforeNetworking succeeded.
[4000] 100812.181937.2787: Task: End of UpdateSetupTask
[4000] 100812.181937.2787: Task: Task ("UpdateSetupBeforeNetworking") execution complete.
[4000] 100812.181937.3099: Task: Running Task("EnableWFNetworkDiscovery") with TaskProcessor("NET").
[4000] 100812.181937.3411: Task: Beginning of task EnableNetworkDiscovery
[4000] 100812.181937.4503: Task: In Task EnableWFNetworkDiscovery: 
[4000] 100812.181937.4503: Setup: Task EnableWFNetworkDiscovery succeeded.
[4000] 100812.181937.4503: Task: End of Task EnableNetworkDiscovery
[4000] 100812.181937.4503: Task: Task ("EnableWFNetworkDiscovery") execution complete.
[4000] 100812.181937.4659: Task: Running Task("NetworkDiscovery") with TaskProcessor("NET").
[4000] 100812.181937.4815: Task: Beginning of task DiscoverNetwork
[4000] 100812.181937.4815: CoreNet: Retreiving MAC Address of the NIC to ignore from InfoXmlConfig
[4000] 100812.181937.4815: CoreNet: Loading info xml configuration from: C:\Program Files\Windows Small Business Server\Data\Info.xml
[4000] 100812.181937.5127: CoreNet: No NICs to ignore in InfoXmlConfig
[4000] 100812.181937.5127: CoreNet: Retrieving MAC Address of the NIC to ignore from NetworkConfig
[4000] 100812.181937.5127: CoreNet: No NICs to ignore in NetworkConfig
[4000] 100812.181938.1679: CoreNet: Added NIC: Local Area Connection
[4000] 100812.181938.2303: CoreNet: Added NIC: Local Area Connection 2
[4000] 100812.181938.5267: CoreNet: Starting network configuration in migration
[4000] 100812.181939.4003: CoreNet: TCP/IP Physical Nic Broadcom NetXtreme Gigabit Ethernet #2 (Local Area Connection 2)
[4000] 100812.181939.4003: CoreNet: 192.168.0.254 is reachable with current settings
[4000] 100812.181939.4003: CoreNet: Retrieving local router override ip from NetworkConfig
[4000] 100812.181939.4003: CoreNet: No local router override ip is defined in NetworkConfig
[4000] 100812.181939.4159: CoreNet: Checking 192.168.0.254 using fake entry 42.42.30.0...
[4000] 100812.181939.4159: CoreNet: Received TtlExpired from 192.168.0.254 using Ping(42.42.30.0)
[4000] 100812.181939.4159: CoreNet: 192.168.0.254 passed the routing test
[4000] 100812.181939.4159: CoreNet: Starting Router Retrieval with IP 192.168.0.254
[4000] 100812.181939.4159: CoreNet: http has not been checked yet -- checking 192.168.0.254
[4000] 100812.181939.4159: CoreNet: Checking uri http://192.168.0.254/
[3752] 100812.181939.4159: CoreNet: UPNP: Searching for UPnP routers
[4000] 100812.181939.9619: CoreNet: Config web site on router 192.168.0.254 available!
[4000] 100812.181939.9619: CoreNet: Found new router 192.168.0.254 with capabilities HttpManualConfigPossible
[3172] 100812.181948.4484: CoreNet: UPnP: Search completed
[4000] 100812.181948.6824: CoreNet: Saving router: 192.168.0.254
[4000] 100812.181949.0100: CoreNet: Disabling all NICs except for Broadcom NetXtreme Gigabit Ethernet #2 (Local Area Connection 2)
[4000] 100812.181949.2908: CoreNet: NIC Broadcom NetXtreme Gigabit Ethernet (Local Area Connection) was already disabled
[4000] 100812.181949.4000: CoreNet: Setting local NIC to static: IP=192.168.0.2 mask=255.255.255.0 gateway=192.168.0.254
[4000] 100812.181949.4000: CoreNet: Setting static IP: 192.168.0.2/255.255.255.0
[4000] 100812.181949.4000: CoreNet: netsh: interface ip set address 11 static address=192.168.0.2 mask=255.255.255.0
[4000] 100812.181953.1128: CoreNet: Address 192.168.0.2 successfully bound to socket.
[4000] 100812.181953.1128: CoreNet: netsh: interface ip delete address 11 address=0.0.0.0 gateway=all
[4000] 100812.181953.1908: CoreNet: netsh: interface ip add address 11 gateway=192.168.0.254 gwmetric=5
[4000] 100812.181953.3780: CoreNet: Setting DNS servers on local NIC Local Area Connection 2(Broadcom NetXtreme Gigabit Ethernet #2)
[4000] 100812.181953.5028: CoreNet: Save router's config URL http://192.168.0.254/ in registry
[4000] 100812.181953.5028: CoreNet: Add http://192.168.0.254/ to Intranet Zone sites in Default User's profile
[4000] 100812.181953.5652: CoreNet: Checking installed DNS server for configured forwarders or root hints
[4000] 100812.181953.6120: CoreNet: Wrapping exception: System.Management.ManagementException: Invalid namespace 
   at System.Management.ManagementException.ThrowWithExtendedInfo(ManagementStatus errorCode)
   at System.Management.ManagementScope.InitializeGuts(Object o)
   at System.Management.ManagementScope.Initialize()
   at System.Management.ManagementObject.Initialize(Boolean getObject)
   at System.Management.ManagementClass.GetInstances(EnumerationOptions options)
   at Microsoft.WindowsServerSolutions.CoreNetworking.CNetDns..ctor(String DnsServer)
[4000] 100812.181953.6120: CoreNet: Error retrieving forwarders or root hints from local DNS server
[4000] 100812.181953.6120: CoreNet: Using default root hints
[4000] 100812.181953.6120: CoreNet: Sending DNS request packet to 202.12.27.33
[4000] 100812.181953.6588: CoreNet: Got answer from root server 202.12.27.33
[4000] 100812.181953.6588: CoreNet: Successfully connected to the Internet
[4000] 100812.181953.6588: CoreNet: Set LastBasicConfigSuccessful flag to true in registry
[4000] 100812.181953.6588: Task: In Task NetworkDiscovery: 
[4000] 100812.181953.6588: Setup: Task NetworkDiscovery succeeded.
[4000] 100812.181953.6588: Task: End of Task DiscoverNetwork
[4000] 100812.181953.6588: Task: Task ("NetworkDiscovery") execution complete.
[4000] 100812.181953.6744: Task: Running Task("UpdateSetupAfterNetworking") with TaskProcessor("NET").
[4000] 100812.181953.6744: Task: Beginning of UpdateSetupTask
[4000] 100812.181953.6744: Task: UpdateSetupTask has already run successfully
[4000] 100812.181953.6744: Task: In Task UpdateSetupAfterNetworking: 
[4000] 100812.181953.6744: Setup: Task UpdateSetupAfterNetworking succeeded.
[4000] 100812.181953.6744: Task: End of UpdateSetupTask
[4000] 100812.181953.6744: Task: Task ("UpdateSetupAfterNetworking") execution complete.
[4000] 100812.181953.8148: TaskManagement: Deleting restart state file at C:\Program Files\Windows Small Business Server\Data\TME\EngineState\SBSNetwork.  Finished=True, Continue=True, RebootNow=False, RedoTask=False
[4000] 100812.181953.8148: Setup: TME state is TasksComplete--we're done.
[4000] 100812.181953.8148: Setup: Setting InProgress = False
[4000] 100812.181953.8304: Setup: Get Stage = NetworkProgress
[4000] 100812.181953.8304: Setup: Back from running the TME
[4000] 100812.181953.8304: Setup: Finished with the tasks so saving runtime data to disk.
[4000] 100812.181953.8460: Setup: No reboot pending, reloading the runtime data into the property bag.
[4000] 100812.181953.8460: Setup: Setting the Setup Stage to Questions.
[4000] 100812.181953.8460: Setup: Setting Stage = Questions
[4000] 100812.181953.8460: Setup: Setting ResultFile value to C:\Program Files\Windows Small Business Server\Data\TME\Results\TaskStatusResults634172339937212592.xml
[4000] 100812.181953.8616: Setup: Getting OS version for SERVER2003
[4000] 100812.181954.5480: Setup: Caught exception when getting source OS Version: System.UnauthorizedAccessException: Access is denied. (Exception from HRESULT: 0x80070005 (E_ACCESSDENIED))
   at System.Runtime.InteropServices.Marshal.ThrowExceptionForHRInternal(Int32 errorCode, IntPtr errorInfo)
   at System.Management.ManagementScope.InitializeGuts(Object o)
   at System.Management.ManagementScope.Initialize()
   at System.Management.ManagementObjectSearcher.Initialize()
   at System.Management.ManagementObjectSearcher.Get()
   at Microsoft.WindowsServerSolutions.Setup.SBSSetup.SchemaUpdatePagePresenter.PopulateSourceServerOS(String sourceServer, String username, String password)
[4000] 100812.181954.5480: Setup: Setting source OS to Other
[4000] 100812.181954.5480: Setup: Running requirement check: SchemaLevelRequirement
[4000] 100812.181954.5948: Setup: Path=LDAP://Davy.local/CN=ActiveDirectoryUpdate,CN=ForestUpdates,CN=Configuration,DC=Davy,DC=local
[4000] 100812.181954.6104: Setup: Revision 2, Expected=2
[4000] 100812.181954.6104: Setup: Path=LDAP://Davy.local/CN=ActiveDirectoryUpdate,CN=DomainUpdates,CN=System,DC=Davy,DC=local
[4000] 100812.181954.6260: Setup: Revision 3, Expected=3
[4000] 100812.182009.2745: Setup: Source Schema Version:      44
[4000] 100812.182009.2745: Setup: Required Schema Version:      44
[4000] 100812.182009.2745: Setup:       Requirement passed.
[4000] 100812.182009.2745: Setup: Running requirement check: FunctionalLevelCheck
[4000] 100812.182010.0701: Setup:       Domain level: Windows2003Domain
[4000] 100812.182010.0701: Setup:       Forest level: Windows2003Forest
[4000] 100812.182010.0701: Setup:       Requirement passed.
[4000] 100812.182010.0701: Setup: Running requirement check: ExchangeSp2Check
[4000] 100812.182011.2869: Setup: Found exchange server version: 7638.  Path=LDAP://SERVER2003/CN=SERVER2003,CN=Servers,CN=first administrative group,CN=Administrative Groups,CN=DAVY,CN=Microsoft Exchange,CN=Services,CN=Configuration,DC=Davy,DC=local
[4000] 100812.182011.3025: Setup:       Requirement passed.
[4000] 100812.182011.3025: Setup: Running requirement check: SourceWMICheck
[4000] 100812.182011.3025: Setup:       Requirement passed.
[4000] 100812.182011.3025: Setup: Running requirement check: SbsSp1Check
[4000] 100812.182011.3025: Setup:       Requirement passed.
[4000] 100812.182011.3025: Setup: Running requirement check: SourceChkRequirement
[4000] 100812.182011.9421: Setup: Caught exception: System.UnauthorizedAccessException: Access is denied. (Exception from HRESULT: 0x80070005 (E_ACCESSDENIED))
   at System.Runtime.InteropServices.Marshal.ThrowExceptionForHRInternal(Int32 errorCode, IntPtr errorInfo)
   at System.Management.ManagementScope.InitializeGuts(Object o)
   at System.Management.ManagementScope.Initialize()
   at System.Management.ManagementObject.Initialize(Boolean getObject)
   at System.Management.ManagementObject.GetMethodParameters(String methodName, ManagementBaseObject& inParameters, IWbemClassObjectFreeThreaded& inParametersClass, IWbemClassObjectFreeThreaded& outParametersClass)
   at System.Management.ManagementObject.GetMethodParameters(String methodName)
   at Microsoft.WindowsServerSolutions.Setup.SBSSetup.RegistrykeyCheck.DoCheck(SourceServerType sourceType, String domainName, String sourceServerName, String userName, String password)
   at Microsoft.WindowsServerSolutions.Setup.SBSSetup.CompositeRequirement.DoCheck(SourceServerType sourceType, String domainName, String sourceServerName, String userName, String password)
   at Microsoft.WindowsServerSolutions.Setup.SBSSetup.MigrationRequirement.CheckRequirement(SourceServerType sourceType, String domainName, String sourceServerName, String userName, String password)
[4000] 100812.182011.9421: Setup:       Error - Run the Migration Preparation Tool on the Source Server - Has Help
[4000] 100812.182011.9421: Wizard: Admin:QueryNextPage(sbssetup.networkprogress) = sbsetup.schemaupdate
[2944] 100812.182011.9577: Setup: Setting ShowBillboards to False
[2944] 100812.182011.9733: Wizard: sbssetup.networkprogress exited with the button: Next
[2944] 100812.182011.9733: WizardChainEngine Next Clicked: Going to page {0}.: sbsetup.schemaupdate
[2944] 100812.182012.0045: Wizard: sbsetup.schemaupdate entered
[2944] 100812.182012.0045: Setup: Failure: Error - Run the Migration Preparation Tool on the Source Server - Has Help
[2944] 100812.182012.1449: Wizard: Admin:QueryNextPage(sbsetup.schemaupdate) = sbssetup.companyinformation
[2944] 100812.182012.1449: Wizard: Admin:QueryNextPage(sbssetup.companyinformation) = sbssetup.optionalcomponents
[2944] 100812.182012.1449: Wizard: Admin:QueryNextPage(sbssetup.optionalcomponents) = sbssetup.mainprogress
[2944] 100812.182012.1449: Wizard: Admin:QueryNextPage(sbssetup.mainprogress) = sbssetup.finish
[2944] 100812.182012.1449: Wizard: Admin:QueryNextPage(sbssetup.finish) = null
[2944] 100812.182012.1449: Wizard: ----------------------------------
[2944] 100812.182012.1449: Wizard: The pages visted:
[2944] 100812.182012.1449: Wizard: [TOC] visited: TOC sbssetup.networkprogress
[2944] 100812.182012.1449: Wizard: Current Page := [TOC sbsetup.schemaupdate]
[2944] 100812.182012.1449: Wizard: [TOC]        : TOC sbssetup.companyinformation
[2944] 100812.182012.1449: Wizard: [TOC]        : TOC sbssetup.optionalcomponents
[2944] 100812.182012.1449: Wizard: [invisible]  : TOC sbssetup.mainprogress
[2944] 100812.182012.1449: Wizard: [TOC]        : TOC sbssetup.finish
[2944] 100812.182012.1449: Wizard: Step 0 of 3

In my case, the server was not resolving the netbios name of the source server. I had to use Shift +F10 to open a command prompt and then edit the hosts file - then it worked. I consider this a bug.

Another note, some postings out there suggest that you should edit 'Impersonate a client after authentication" in the Domain Controller Group Policy settings. In my case, this rendered my server nearly inoperable causing my server to hang on "Applying computer settings" for 3 hours after reboot - it messed up SQL, BES, and god knows what else. Grueling gut wrenching experience to say the least.

If you have this problem, check that DCOM is enabled - check the timezone settings (see post above) - then try to ping the source server using netbios name. If it fails, then what worked for me might work for you. Here is how I edited the hosts file -

Shift +F10 to open command prompt

Navigate to hosts file in c:\windows\system32\drivers\etc

Rename hosts to hosts.txt. Command to do this is "ren hosts host.txt". In my case I first copied the host file to the root of the C drive where I renamed it. Windows sometimes will give you problems attempting to rename hosts while in the \etc directory.

Open hosts.txt and add an entry for your server. This is easy. If you don't know how, look it up.

Rename hosts.txt back to hosts and place it back into the \etc directory.

Ping the netbios name of your server and it should resolve - then should then be able to continue with your migration.