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When the pre-9.3 geodatabase direct connect drivers are installed on an ArcGIS Desktop 9.3 client and a connection is made to an ArcSDE 9.2 geodatabase in SQL Server Express, the geodatabase cannot be upgraded. The following error message is returned when the Upgrade Geodatabase button in the Geodatabase Properties dialog box is clicked:
"Upgrade geodatabase failed. Active connections found during upgrade."
With the direct connect drivers installed, the client application connects to the geodatabase. However, if there are any connections to the geodatabase, it cannot be upgraded.
Uninstall the pre-9.3 geodatabase direct connect drivers and connect from the ArcGIS Desktop 9.3 client to the ArcSDE 9.2 geodatabase on SQL Server Express. Without the direct connect driver, the connection cannot be made and an upgrade prompt appears. Click Yes when prompted to upgrade.