Anthony,
I'm surprised that you're getting that message when trying to upgrade from that version of BP... If you would like to pursue that further, I'd suggest opening a case with support.
When you start fresh, you'll lose all UI customizations and all user configuration. You'll have to re-enter all your users and get them set up again. If that isn't an issue, you can remove all DYNAMICS..Mbf* sql tables and install to a fresh SharePoint site collection.
Thanks
Rob
