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Upgrade from 2005 to 2008 fails with error MSSQLSERVER.INACTIVE

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Hi,
I am trying to upgrade my copy of SQL 2005 Ent edition to 2008, the first time i tried this it passed all checks and seemed to install ok.  When I tried to run it it was corupt.
I have since removed the 2008 install and tried to re-install but I keep getting the following message.
The Instance ID 'MSSQLSERVER' is already in use by SQL server instance 'MSSQLSERVER.INACTIVE'. To conrinue, specify a unique Instance ID
Help! how can I upgrade again, I can not get passed this error.
Thanks

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