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I ran the RTM version of TFS2010 on my server that has TFS 2010 RC on it and it gave me this error message.

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I thought you could upgrade from the RC to the final version. Was I wrong?

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up vote 1 down vote accepted

No, you are correct. You have to uninstall RC first, then re-install the RTM. At some point during install you can point to your database and the install process will pick that up.

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Might also be worth checking out Bryan Krieger's blog post about upgrading

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