SharePoint Migration within a migration from SBS 2003 to SBS 2008

So I am doing an SBS 2003 to SBS 2008 migration. Amusingly, eventhough I've done a few migrations before, this would be the first time I've ever migrated SharePoint (no one else previously used it).

I've run into an error: On the prescan tool that I am running on the SBS 2003 box, I get this error:

04/26/2010 08:33:01 Skipping virtual server: http://companyweb/. Server state = NeedUpgrade. Most likely this virtual server is not extended with WSS v2.
04/26/2010 08:33:01 Scan finished without failure.
04/26/2010 08:33:01 ===============================Logs===============================
04/26/2010 08:33:01 Log file: C:\DOCUME~1\ltech\LOCALS~1\Temp\2\PreupgradeReport_634078675795229680_Log.txt
04/26/2010 08:33:01 Summary file: C:\DOCUME~1\ltech\LOCALS~1\Temp\2\PreupgradeReport_634078675795229680_Summary.xml
04/26/2010 08:33:01 ==============================Totals==============================
04/26/2010 08:33:01 Number of sites skipped (already scanned):   0
04/26/2010 08:33:01 Number of sites scanned:   0
04/26/2010 08:33:01 Number of broken sites:   0
04/26/2010 08:33:01 Number of webs scanned:   0
04/26/2010 08:33:01 Number of broken webs:   0
04/26/2010 08:33:01 Number of webs using custom template:   0
04/26/2010 08:33:01 Number of pages scanned:   0
04/26/2010 08:33:01 Number of unghosted pages:   0


At first I thought nothing of the error, and tried to continue my migration, but when I got to the point on the SBS 2008 server, it told me that the prescan tool needed to run. So I am stuck at this point.