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Error upgrading windows 2003 standard to enterprise

I'm having difficult doing this upgrade.  When i try and upgrade from within windows, i get the following error:

you don't have a required privilege.  You must have the following privileges to run:
Shut down the system
Back up files and directories
Restore files and directories
Modify firmware environment values

i am remoting into the server and have tried using both the local administrator and the domain administrator account but i get the same error.  I have tried running the compatibility wizard prior to running the install and i still get the same error

I have tried booting from the install disc and i get the option for a new install which would format my current server or i can repair.  When i attempt to repair, it asks me to pick my windows drive and asks me to and allows me to log in and then i can do repair options, fdisk, etc, but not install.  I'm missing something here.  
thanks in advance
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sharjeel ashraf
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How are you remoting into the computer?

If you are using MS Terminal Services (RDP), try using the switch /admin or /console (depending on the version of the RDP client you are using).

This will attach you to session 0, which is the same session ID as the console. Perhaps the installation is aware of this?
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Thanks, I will check on permissions.  w2k3 standard is oem and enterprise is a retail version.
Are you moving from 2003 standard  (non-R2) to 2003 enterprise (non-R2)?

I did find this upgrade path: http://support.microsoft.com/kb/912309 , but its based on non-R2 to R2.

Basically, it shows that if you have an OEM version of non-R2 and are upgrading to R2, no problems are found.

Also, given the fact that you are given a very specific set of User Rights permissions, I'd believe that the upgrade path is otherwise allowed, its just that the actual permissions for you user account don't include them, based on the assumption that its easier to validate two software versions verses digging through and enumerating the actual permissions granted to an account.

Also, perhaps you need to make sure that the service packs match.

Also, make sure that you're not installing a different bitness (Microsoft term, I swear: http://blogs.msdn.com/b/david.wang/archive/2006/03/26/howto-detect-process-bitness.aspx)
Thanks,  giving the policy permissions solved the problem and allowed me to proceed on to the upgrade option.  Shouldn't have assumed the admin had all the permissions.   Will complete upgrade install tomorrow.

sommerblink- it is r2 to r2 upgrade,  and 32bit.  Upgrading to enterprise for more memory for sql.