WSUS 3 Upgrade Issues

When I attempt to upgrade to WSUS 3 from WSUS 2 it fails. The output from the log is below. Ay suggestions are greaty appreciated. It is a Windows 2003 Server with SP2, and SQL 2005 Express SP1.

Error earlier in the log:
SQL command is returning error (Error 0x80004005: Unspecified Error)

Final error in log:
DOInstall: Wsus setup failed (Error 0x80070643: Fatal error during installation)