Might due to ARITHABORT option is not set to ON. Can you let me know what compatibility level the db is at?
You can find it by right click the db , choose property, then choose option, it is the 3rd option from the top
That's spot on, the database was set to 2000 Compatibility. Change it to 2005, re-ran the upgrade & worked like a charm.
Thanks for your help.