Your compatibility level in SQL Server Management Studio must be set to a value of SQL Server 2005 (90) or higher (preferably SQL Server 2008 (100)) as shown below. 

 

From within SQL Server Management Studio please select your Diamond SIS database, right click, and select Properties > Options. 

 

We recommend that you make a full backup of your SQL database, change this setting, and then apply the version update to your database.