WSUS 2.0 to 3.0 upgrade with remote SQL 2000 server - failing

Hi All

I have a lab setup with two servers (both running Windows Server 2003 SP1).
WSUS 2.0 is installed in a front-end/back-end model.
I followed the procedure for upgrading to WSUS 3.0
- Verified prerequisites
- Uninstalled WSUS 2.0 from back-end SQL server (did not remove database and
log files)
- Started WSUS 3.0 installation package on front-end server
I click Next on the installation procedure and the Setup connects to my
back-end SQL server and says the following:
"The version of SQL Server being used by WSUS 2.0 is not supported for WSUS
3.0. To install WSUS3.0, you must upgrade your SQL server to SQL Server 2005
SP1 or higher. To exit the wizard, click Cancel. Click Next to begin the
upgrade"

My problem is that "Next" is greyed out.

That's it - no other options.

In "WSUS 3.0 Deployment Guide" it says:
"The WSUS 3.0 installation program will migrate all WSUS 2.0 settings to
WSUS 3.0. Furthermore, if the installation program finds any SQL Server
database other than SQL Server 2005 Service Pack 1 (or SQL Server 2005
Service Pack 2 for Windows Server "Longhorn"), it will back up the existing
database, install Windows® Internal Database, and migrate the database to
it."


My problem is that nothing happens and I am not prompted to install Windows
Internal Database. BTW, is this the same as SQL 2005 Express?

Does anybody know how I should overcome this?

Thanks in advance.

/Thomas