Error removing Exchange from SBS 2003 before demoting

With exception of a couple of small things, migration from sbs 2003 to sbs 2011 has been good. I am at last stage where I need to remove Exchange 2003 from SBS 2003 before its demotion. The following error occurs when I select to uninstall the Exchange component -"Setup encountered an error while checking prerequisites for the component "Microsoft Exchange". 0x80072030 (8240): There is no such object on the server."

The error log shows this -
The operation has completed successfully.
[17:42:01] Setup encountered an error while checking prerequisites for the component "Microsoft Exchange":
0X80072030 (8240): There is no such object on the server.
[17:42:30] Entering CCompForestPrep::ScGetEffectiveMode
[17:42:30] Leaving CCompForestPrep::ScGetEffectiveMode
[17:42:30] Entering ScDetermineIfLocalDomainServerGroupHasAlreadyBeenACLedOnExchangeCT
[17:42:30] Using cached result for domain "/dc=local/dc=xxxxxxx"
[17:42:30] The required permissions have already been set
[17:42:30] Leaving ScDetermineIfLocalDomainServerGroupHasAlreadyBeenACLedOnExchangeCT
[17:42:30] Entering CCompDomainPrep::ScGetEffectiveMode
[17:42:30] Leaving CCompDomainPrep::ScGetEffectiveMode
[17:42:30] Entering ScDetermineIfLocalDomainServerGroupHasAlreadyBeenACLedOnExchangeCT
[17:42:30] Using cached result for domain "/dc=local/dc=xxxxxx"
[17:42:30] The required permissions have already been set
[17:42:30] Leaving ScDetermineIfLocalDomainServerGroupHasAlreadyBeenACLedOnExchangeCT
[17:42:30] Attempting to create the SRS DOB [checking whether SRS is installed].
[17:42:30] Entering ScPRQ_DoesNotContainLastMAPIMDBInMixedModeAG
[17:42:30] This prerequisite has PASSED -- ID:62235 --
[17:42:30] Leaving ScPRQ_DoesNotContainLastMAPIMDBInMixedModeAG
[17:42:30]  ScPRQ_ServerIsNotRUSResponsibleServerInTheNonEmptyOrg (f:\titanium\admin\src\udog\excommon\prereq.cxx:3133)
           Error code 0X80072030 (8240): There is no such object on the server.
[17:42:30]  CCompServer::ScCheckEVSPrerequisites (f:\titanium\admin\src\udog\exsetdata\components\server\compserver.cxx:1358)
           Error code 0X80072030 (8240): There is no such object on the server.
[17:42:30]  CCompServer::ScCheckPrerequisites (f:\titanium\admin\src\udog\exsetdata\components\server\compserver.cxx:955)
           Error code 0X80072030 (8240): There is no such object on the server.
[17:42:30]  CComExchSetupComponent::ScCheckPrerequisites (f:\titanium\admin\src\udog\bo\comboifaces.cxx:1598)
           Error code 0X80072030 (8240): There is no such object on the server.
[17:42:30]  CComExchSetupComponent::ScCheckPrerequisites (f:\titanium\admin\src\udog\bo\comboifaces.cxx:1598)
           Error code 0X80072030 (8240): There is no such object on the server.
[17:42:30] === IGNORING PREVIOUS ERRORS === HrSetProblemOnInstallAction, while calling ScCheckPrerequisites (f:\titanium\admin\src\udog\bo\comboifaces.cxx:1399)
           The operation has completed successfully.
[17:42:30] Setup encountered an error while checking prerequisites for the component "Microsoft Exchange":
0X80072030 (8240): There is no such object on the server.
[17:44:16]  CComBOIFacesFactory::QueryInterface (f:\titanium\admin\src\udog\bo\bofactory.cxx:54)
           Error code 0X80004002 (16386): No interface.

Read up a little and the manual uninstall seems very tedious... This is a small network, 15 users and only about 3 years up and very clean.
My 2 questions are -
1. Help me with this error so I can demote server.
2. What are the consequences if I just went straight to dcpromo?

Thx for any advice....