CRM 3.0 redeployment part 3

Step 5: Ok now comes the tricky part of the whole redeployment . i am stuck in this place for two days now. after setting the server and database name a window comes for specifying the organizational unit. i have selected the organizational unit correctly. additionally i have stayed with keep existing users. then if i continue the redeployment wizard by clicking next. the wizard migrates the system without any error. Step 6: I am trying to install the CRM server by connecting to the existing database in the server 1.....voila.......there are errors but different ones....... it has some problems with sql server 2005. it says, setup detected a version mismatch between specified database and the current product ($#@$##). i don't understand what on earth it is saying. if click for detail it shows this,

The Version of Your Microsoft CRM Database is Lower Than Expected

Cause

Setup has detected that the version of your current Microsoft CRM 1.2 database does not match the version required.

Solution

To resolve this problem, contact Microsoft Product Support Services. For a complete list of Microsoft Product Support Services telephone numbers and information about support costs, visit the following Microsoft Web site:

http://support.microsoft.com/default.aspx?scid=fh;[LN];CNTACTMS

as i said earlier i don't understand a single thing. i don't know from where CRM 1.2 database comes into play..... let's see if i can find any thing related to this issue on the net.....