TL;DR; Explains issues upgrading from TFS 2008 to TFS 2010 Beta 1 due to SQL Server collation conflicts, error messages, and the need to align collation settings.

I have just finished installing TFS 2010 beta 1 and doing an upgrade of out TFS 2008 data. This did not go well…
Due to a collation mismatch between my original SQL Server 2005 and my new SQL Server 2008 I received an error when upgrading…
[Error @13:57:23.665] TF255184: An error occurred during operation. Message=Cannot resolve the collation conflict between “SQL_Latin1_General_CP1_CI_AS” and “Latin1_General_CI_AS” in the equal to operation.
Transaction count after EXECUTE indicates a mismatching number of BEGIN and COMMIT statements. Previous count = 0, current count = 1.. Exception=.
[Error @13:57:23.681] TF254026: An error occurred during the following operation: Upgrade. The error occurred during the following step group: Upgrade.TfsTeamBuild. It occurred on the following step: Check In Build Process Templates. The following message was returned: Cannot resolve the collation conflict between “SQL_Latin1_General_CP1_CI_AS” and “Latin1_General_CI_AS” in the equal to operation.
Transaction count after EXECUTE indicates a mismatching number of BEGIN and COMMIT statements. Previous count = 0, current count = 1..
[Info @13:57:23.681] CollectionServicingMonitor - [5/25/2009 2:56:55 PM] Servicing step Check In Build Process Templates failed. (ServicingOperation: Upgrade; Step group: Upgrade.TfsTeamBuild)
And then the roll back of the transaction did not quite work as expected, so although the TFS Administration does not know about my OldTfs2008Test1 project collection.
My client has it listed but with a TF31001 error.…
Solution? Suck it up and reinstall everything, including SQL and change the collation to the same on both servers. :(
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